1 min read.Updated: 30 Aug 2021, 06:01 PM ISTLivemint
In keeping with India's ambitions to become a knowledge-based economy, the transformation of mortgage lending and connecting the property ecosystem will expedite the speed of socio-economic change in the country
MUMBAI: Mortgage lending has increased from 1% of India’s gross domestic product (GDP) in 1990 to almost 11% now, worth approximately Rs27 trillion, said Rahul Bhave, executive director, National Housing Bank.
“The sector has performed admirably even throughout covid-19. In comparison to the previous year, distribution increased by 185% in FY 2021. Banks provided over 65% of these loans, while housing finance companies (HFCs) provided the rest. In the housing sector, the entire game has changed, and technology is influencing the industry," he said.
Experts from various industries, including regulatory organisations, banks, and embassies, were part of a webinar to discuss the role of technology and digital in the property valuation assessment and mortgage ecosystem. The webinar was organized by Valocity which offers a cloud-based technology platform that digitises the workflow for lenders.
Amitabh Kant, chief executive officer of NITI Aayog, said, the need of the hour is to accelerate the digitisation in India. In keeping with India's ambitions to become a knowledge-based economy, the transformation of mortgage lending and connecting the property ecosystem will expedite the speed of socio-economic change in the country, he said.
“The use of technology, and the data intelligence will enable the end-to-end system and enable transparency. The rich experience of New Zealand-based Valocity Global company will add a lot of value to the market. Amidst the unique advantages offered by India, this is an incredible opportunity for everyone in the property and valuation ecosystem," said Kant.
Meanwhile, Shanti Ekambaram, group president (consumer banking) at Kotak Mahindra Bank, said the government of India has been aggressively driving digitisation, and the covid-19 pandemic has leapfrogged digital by five years.
“Mortgage is one of the core needs in India, and it is important to create an ecosystem of all players powered by technology," said Ekambaram.