When a person starts a job, he builds his dream home in the city or village. That means the number of people doing this is usually quite high. A large population in India is from the middle class and lower class. They take loans to buy a house or a car. Recently, a report has come in which it has been claimed that people are now taking less loans to buy a house than before. It is not that people are buying houses without loans. Rather, they are buying less houses than before. This has been revealed by citing two different reports. The first report is related to home loans.
According to the report, the volume of home loan issuance declined by nine percent in the June quarter of the current financial year. According to the report of TransUnion CIBIL, a loan information company, the volume of home loan issuance in terms of value was equal to the same period a year ago. The report said that during the quarter under review, the outstanding balance on home loans grew only by 14 percent. Thus, it grew the slowest compared to all retail loan categories.
Interestingly, the decline in loan issuance volume and sluggish growth in outstanding balances came at a time when loan defaults declined during the quarter. The report said that loans overdue for more than 90 days stood at 0.9 per cent in June 2024, showing an improvement of 0.32 per cent. According to this, India's retail loan growth has declined in the June 2024 quarter as financial institutions have tightened lending.
Housing sales in nine major cities of the country are expected to fall by 18 percent to 1,04,393 units in the July-September quarter. Last year, 1,26,848 units were sold in the same period. Real estate data analyst company PropEquity released housing sales data in nine major cities on Friday. According to the data, housing sales are expected to grow by 22 percent in Delhi-Delhi region and 4 percent in Navi Mumbai in July-September this year. Sales are expected to decline in the other seven cities. Hyderabad may see the highest decline of 42 percent. After this, Bengaluru is expected to fall by 26 percent, Kolkata by 23 percent, Pune by 19 percent, Chennai by 18 percent, Mumbai by 17 percent and Thane by 10 percent.
