Demand for home loans grew 18% in 2022

CHENNAI: Home loans worth Rs 9 lakh crore was disbursed by banks and other financial institutions in calendar year 2022, recording a growth of 18 per cent over the previous year.

Around 34 lakh home loans totalling Rs 9 lakh crore were disbursed during the year, which were up 18 per cent in value and 17 per cent in volume. Overall portfolio outstanding of home loans grew by 16 per cent. Public sector banks, highest lender of home loans, saw its disbursement share coming down from 45 per cent in 2020 to 42 per cent in 2022, while private banks witnessed highest growth of 20 per cent, said a study by Equifax and Andromeda.

Loans with ticket size of up to Rs 25 lakh accounted to 67 per cent of the loans, those between Rs 25 lakh and Rs 50 lakh made up for 22 per cent, those between Rs 50 lakh and Rs 75 lakh for 6 per cent.

In terms of volumes, semi urban areas accounted for the highest share of loans at 46 per cent, followed by 36 per cent in urban areas and 17 per cent in rural areas. However, 50 per cent of the disbursed amount went to urban areas, 39 per cent in semi urban areas and 11 per cent in rural areas.

Those aged between 31 years and 40 years availed the largest chunk of loans at 38 per cent and 28 per cent was availed by those between 41 and 50 years.  

The market size of the retail industry reached Rs 100 lakh crore by December 2022, bouncing back with 40 per cent growth. Personal loans grew 57 per cent. Consumer durable loans grew by 48 per cent and gold loans by 57 per cent.