Affordable home loans have seen a compounded annual growth of 23% over the last five years, credit information bureau TransUnion Cibil said in a report.
In the same period, average loan size fell from Rs4.8 lakh in 2009-10 to Rs4.1 lakh currently, the report added. Meanwhile, delinquency rate has stayed at around 1%.
The report pointed out that close to 3.5 million new low-cost housing loan accounts have been opened in the last five years, with 750,000 borrowers added in 2016 alone.
Loans worth Rs30,400 crore were sanctioned for affordable housing in 2016.
The report noted that Maharashtra, Madhya Pradesh, Gujarat, Tamil Nadu and Andhra Pradesh are the top five states with the highest number of loan accounts meant for affordable housing opened in the last five years.
These five states contribute 55-60% of the total accounts opened and hold roughly the same share in the total amount sanctioned.
Maharashtra holds the top spot with the highest number of accounts opened at over 653,000 followed by Madhya Pradesh at 560,000, Gujarat at 313,000, Tamil Nadu at 265,000 and Andhra Pradesh at 228,000, the report added.
Affordable housing had received a shot in the arm from the government’s ambitious Housing for All 2022 programme. In December, the government also announced an interest subsidy of up to 4% on loans taken under the Pradhan Mantri Awas Yojana.