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Not rattled by rates? Home loan enquiries rise in 2011
Though interest rates hardened in the last few months, consumers are looking to invest in properties and the demand for new homes is on the rise. Mahua Venkatesh reports. No let-up despite realty slump
Though interest rates hardened in the last few months, consumers are looking to invest in properties and the demand for new homes is on the rise. Home loan enquiries have increased significantly in 2011 compared to 2010 as per a study carried out by Credit Information Bureau (India) Ltd (CIBIL).
Enquiries increased by over 21% during the April-December period of 2011 compared to the corresponding period in 2010.
The study also shows that more than 88% of the new home loan borrowers acquired in 2011 have a high credit worthy score compared to 2008. In 2008 only 23% of new borrowers were in the least risky category.
“Most borrowers who have gone in for home loans in 2011 have acquired a high score and therefore, lenders need not worry much,” said Arun Thukral, managing director, CIBIL.
Banks and housing finance companies are hoping that the spurt in demand would continue in the current year.
“We have seen credit demand in the home segment gathering steam in the last six months and this trend is expected to continue,” said TM Bhasin, chairman and MD, Indian Bank.
The study also says home loans of less than Rs 5 lakh have reduced from 41% of the total loan sanctioned in 2007 to 20% in 2011.
