Demand for Affordable Housing Loans Show Signs of Decline
Affordable housing is showing signs of rate-induced slowdown, according to State Bank of India’s economic research department’s (ERD) report Ecowrap. The ERD estimates, on an average, the proportion of home loans up to Rs 30 lakhs in total loans disbursed has declined to 45 per cent during January-February 2023 from around 60 per cent of disbursals in June 2022 quarter. Moreover, the share of home loans above Rs 50 lakh has increased from 15 per cent to about 25 per cent of the fresh disbursals during this fiscal. “This indicates that the demand for housing loans by people at the lower end of the strata, who take loans for affordable housing sector, has been noticeably hit,” said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI. Moreover, the share of home loans above Rs 50 lakh has increased from 15 per cent to about 25 per cent of the fresh disbursals during this fiscal. “This indicates that the demand for housing loans by people at the lower end of the strata, who take loans for affordable housing sector, has been noticeably hit,” said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.
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