Banks disbursed home loans worth ₹9 trillion in 2022: Report
1 min read 11 May 2023, 02:42 PM ISTRetail lenders disbursed 31 crore loans in 2022, despite the pandemic affecting the retail lending industry.
PremiumNew Delhi: Domestic banks, housing finance companies, among others, disbursed 34 lakh home loans worth ₹9 trillion ($121.6 billion) in calendar year 2022, according to a study on retail loans by Equifax and Andromeda.
Loans for less-than ₹25 lakh ($33,825) accounted for the maximum number of disbursals, making up 67% of total loans. Meanwhile, the ₹75 lakh- ₹1 crore ticket size category saw a 36% year-on-year (YoY) increase in disbursals in 2022.
Overall portfolio outstanding of home loans grew 16% from December 2021 to December 2022, the study titled ‘Indian Retail Loans Overview-April 2023’ showed. Personal loans saw an impressive growth of 57% during 2022, with the market size of the retail industry reaching ₹100 lakh crore by December last year.
Retail lenders disbursed 31 crore loans in 2022, despite the pandemic affecting the retail lending industry. The report noted that personal loan interest rates have not increased compared to home loan rates, resulting in a rise in demand for personal loans in India.
V Swaminathan, executive chairman of Andromeda Sales and Distributions Pvt. Ltd., said, “Be it public sector banks, private sector banks or housing finance companies (HFCs), all are witnessing healthy growth in home loan business."
The contribution to retail loan disbursement was highest by public sector banks and private sector banks. However, the non-banking financial companies (NBFCs) witnessed a growth of 78% YoY during January 2021 to December 2021. Private sector banks recorded a growth of 24% on an annual basis.
NBFCs are helping the much-required credit reach every part of the country, Swaminathan said, adding that they deploy digital infrastructure and use app-based technology for loan disbursal.
The report noted that borrowers must exercise caution while availing personal loans, keeping in mind their repayment capacity and avoiding the pitfalls of debt traps.
