Even as housing loan growth slow,affordable housing yet a bright spot

0f691f8 - Copy

By Accommodation Times Bureau

Housing credit growth moderated to 16% in 2016-17 as against 19% in 2015-16, the affordable housing segment holds promise, according to rating agency ICRA report.The report said that lowering of interest rates and various government initiatives —Prime Minister Awas Yojana (PMAY), according infrastructure status, to boost affordable housing will increase the demand for the segment, which may see credit growth of up to 30%. As against an overall growth of 16% in the housing loan sector, total disbursal of credit in the affordable segment grew at 28% to Rs 1.2 lakh crore in 2016-17.

“While the slowdown was across both HFCs and banks, the decline in the pace of growth of banks was higher – declining from 19% in 2015-16 to 16% in 2016-17 — largely because they were operationally tied up in second half of 2016-17 on account of demonetization,” according to the report.

Similar Articles

Leave a Reply