Tuesday, November 3, 2015

How are home loans being given by banks going up?

There is no real time data coming out on Indian real estate which can be used to estimate which way are the real estate prices are headed:


There is no real time data coming out on Indian real estate which can be used to estimate which way are the real estate prices are headed - (Image - chennairealty.biz)

Every month, the Reserve Bank of India (RBI) declares the sectoral deployment of credit data. This provides details of the different kind of lending carried out by banks. One of the data points that the RBI shares is the total amount of home loans given by banks.

The latest data was released on October 30, 2015. As per this data, between September 19, 2014 and September 18, 2015, banks gave out home loans worth Rs 1,04,135 crore. This forms 21.6% of the total lending carried out by banks.

How was the situation a year earlier? Between September 20, 2013 and September 19, 2014, banks had given out home loans worth Rs 75,058 crore. This formed around 16.5% of the overall lending by banks.

So what does this tell us? Between September 2014 and September 2015, the banks gave out a greater amount of home loans both in absolute as well as proportionate terms, in comparison to the period between September 2013 and September 2014.

So far so good.

Now compare this to the news that you keep hearing about real estate companies sitting on huge number of unsold homes. If that is the case then how are home loans being given by banks going up?
Read more at - RBI needs to answer some questions on home loans

Related Story:

1) RBI move on loan-to-value ratio to cut down home loan rates: Crisil

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