India Housing Loan Market to be Dominated by Banks Segment During the Forecast Period
Offering tax deduction
by government on the principal amount, along with the interest paid and longest
repayment tenure on home loan will drive the India housing loan market in the
forecasted years.
According to
TechSci Research report, “India Housing Loan Market – By Region, Competition,
Opportunity, and Forecast, 2019-2029F,” the India Housing Loan market is
forecasted to grow at an impressive CAGR during the forecast period, due to increased
availability of finance options, changing societal standards, improved labor
mobility, increasing flexibility of repayment plans, and government initiatives.
With the
increasing urban population and growing middle class population, the demand of
housing loan industry has increased in India. Hence, an increasing number of individuals are actively looking
to apply for housing loans by utilizing housing loans and EMI calculators to
verify their eligibility for a housing loan and embarking on the process of
purchasing a home. Moreover, housing loan demand in India is on the rise due to
several incentives offered to homebuyers in recent years, including government initiatives
and discounts on stamp duty rates in some states. The majority of the prominent
housing finance companies have adopted modern business models that cater to the
requirements of various segments, with a particular emphasis on the affordable
housing sector. In addition to the adoption of modern business models, the
digitalization of processes to enhance efficiency and enhance customer
experience is also a contributing factor to the expansion of home loans.
The majority of
the leading housing loan companies have adopted modern business models that
cater to the requirements of various segments, with a particular emphasis on
the low-cost housing segment. In addition to the adoption of modern business
models, the digitalization of processes to enhance efficiency and enhance the
customer experience is also a contributing factor to the expansion of home
loans in India during the forecasted period.
In 2022, the interest
rates have increased as a result of repo rate hikes by the Reserve Bank of
India (RBI). The RBI has increased the key interest rate by 190 basis points,
which forced lenders to increase home loan rates. Despite the increasing home
loan rates, housing sales continue to remain strong across the top cities of
India, driving the housing loan market during the forecast period.
Browse over XX
market data Figures spread through XX Pages and an in-depth TOC on "India Housing Loan Market.”
The India housing
loan market is segmented on the basis of type, customer type, source, interest rate,
tenure, and region.
On the basis of type,
the market is fragmented into home purchase, land/ plot purchase, home
construction, home improvement, home extension, and others, among which loan
for home purchase has a significant share due to the rise in demand for ready-to-move in houses, owing to
the convenience and accessibility.
The market is
segmented in bank and housing finance companies (HFCs), among which banks sector
is likely to dominate the market. The
primary reason for this is that banks provide competitive interest rates in
comparison to housing finance companies, which are regulated by the National
Housing Bank. Furthermore, banks adhere to the MCLR (Marginal Cost of
Funds-Based Lending Rate) model, which draws in large number of customers.
Key market
players in the India Housing Loan market include:
·
Housing
Development Finance Corporation Limited
·
LIC
Housing Finance Limited
·
Indiabulls
Housing Finance Limited
·
L&T
Housing Finance Limited
·
PNB
Housing Finance Limited
·
Tata
Capital Housing Finance Limited
·
State
Bank of India
·
Bajaj
Housing Finance Limited
·
IIFL
Housing Finance Limited
·
Can
Fin Homes Ltd
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“Over the coming
years, the growth of the housing loan market is being driven by the increasing demand
of housing among middle class population, increase in the purchasing power of
younger generation, cultural shifts towards nuclear families, government’s
focus on housing through the Pradhan Mantri Awas Yojana, the income tax rebate
on interest repayment, and the affordable mortgage rates. Furthermore, the low
interest rates in India and the growing urbanization, will continue to drive
growth in the Indian home loan market over the next few years.” said Mr. Karan Chechi, Research
Director with TechSci Research, a research based global management consulting
firm.
“India Housing Loan Market By Type (Home Purchase, Land/ Plot Purchase, Home
Construction, Home Improvement, Home Extension, Others) By Customer Type
(Salaried, Self-Employed), By Source (Bank, Housing Finance Companies (HFCs)),
By Interest Rate (Below 10%, Above 10%), By Tenure (Below 5 Years, 5 to below
10 Years, 10 to 20 Years, Above 20 Years), By Region, Competition, Forecast
& Opportunities, 2019-2029F”, has evaluated the future growth
potential of housing loan in India and provides statistics and information on market structure, size, share
and future growth. The report is intended to provide cutting-edge market
intelligence and help decision makers take sound investment decision. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges and opportunities present in India Housing Loan market.
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