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The volume of low value home loans, with value less than Rs. 35 lakhs, are 76% of the originations have dropped by 4%, impacting the overall home loan growth. Overall, home loans have shown a 9% growth in value in Q2 of this fiscal.
There has been a shift in home loan ticket sizes because of the rise in property prices this year. “Home loans of Rs. 75 lakhs and above in value, which form 7% of the overall origination volume, have shown a significant 23% growth in the September quarter, as compared to last year”, said Rajesh Kumar, MD and CEO of TransUnion Cibil.
Indias’ youth and consumers from the semi urban and rural areas form most of the new to credit customers. The share of these new to credit consumers dropped to 14% in the September quarter from 17% last year.
Overall balance level of delinquencies improved across categories, except for marginal decline in credit cards and personal loans. This improvement is reflected in the credit market indicator for Consumer Performance, which went up by 11 points to 101 in September 2023, from 90 in September 2022.
“lenders must continue to focus on strong underwriting practices and regular and nuanced monitoring of consumer behaviour to drive sustained credit growth and profitability”, said Kumar.
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