NEW DELHI :
Beating India's financial capital Mumbai, IT hub Bengaluru took the highest home loan and personal loan in the country, according to a market report. The highest home loan ticket size in India during 2019 was ₹2.2 crore while Mumbai stood second at ₹2 crore, BankBazaar Moneymood 2020 report said. Similarly in the personal loan category, someone from Bengaluru walked away with the highest personal loan of ₹34 lakh.
The average home loan size was also the highest in Bengaluru ( ₹33.3 lakh), behind Mumbai's ₹26.6 lakh. According to ANAROCK Property Consultants, Bengaluru's Electronic City saw average prices increase by 11% in 2019 as compared to 2016. Bengaluru's Sarjapur Road was ranked as sixth in the list of top 10 active residential hotspots.
"To counter increasing property prices, instead of waiting for years or even decades to buy a house, Bangaloreans are increasingly turning to home loans to do so. So we are seeing not just high value loans but also a high number of people opting for loans from Bangalore," Aparna Mahesh, CMO, BankBazaar.com, told Livemint.
Top 5 cities with highest home loan ticket sizes:
1) Bangalore: ₹2.2 crore
2) Mumbai: ₹2 crore
3) Ahmedabad: ₹1.98 crore
4) Pune: ₹1.84 crore
5) Chennai: ₹1.3 crore
Top 5 cities with highest personal loan ticket sizes:
1) Bengaluru: ₹35 lakh
2) Dharwad: ₹30 lakh
3) Ghaziabad: ₹30 lakh
4) Hyderabad: ₹30 lakh
5) Kolkata: ₹26 lakh
(Data: BankBazaar Moneymood 2020 report)
Despite the slowdown, home loans saw an impressive growth of 25% in terms of organic searches. "With record-low interest rates since October 2019, increased inventory, higher tax benefits, and initiatives like PMAY, real estate has never been more attractive. This growth here was primarily spearheaded by home loans under Rs. 30 lakh, which rose to 72% of the total number of applications," Mahesh said.
BankBazaar data shows that despite the slowdown, people are still buying houses. However, probably because of the slowdown, they are opting to choose budget homes that cost less and therefore have a smaller loan and EMI burden.