Loans for Affordable Housing may provide Profitable Growth Opportunity to Lenders: TransUnion CIBIL Market Insight Report
Mumbai, 12 May, 2017 – Loans meant for Affordable Housing (Home loans of ticket size less than INR 10 lakhs) has shown a robust growth rate of 23% over the last five years, as per the latest market insights report from TransUnion CIBIL. Even more encouraging is the fact that this growth has come while keeping the delinquency rate firmly in control at levels around 1.0% (90+ %).Further the average ticket size has been decreasing from ~INR 4.8 Lakh in 2009-10 to ~INR 4.1 Lakh currently, possibly suggesting the credit industry’s success on the financial inclusion drive. This augurs well for the national priority of financial inclusion and credit penetration as it implies that more and more consumers from the bottom of the pyramid are gaining access to finance.
TUCL Market Insights- Loans for Affordable Housing*
*Home loans of ticket size less than INR 10 lakhs
“The possible reason for the steady growth is the affordable housing loan segment is the increase in lending towards the bottom of the pyramid. In consideration of the rise in home prices, this could be seen as a significant development indicator. These findings may indicate a positive trend on increasing access to finance for the grassroots and low income groups”, Ms. Chandorkar added.
With progressive government policies and availability of information for lending through the credit information infrastructure, India’s credit industry is well positioned to accelerate growth in lending and drive access to finance for many more deserving consumers across our country. TransUnion CIBIL is committed to provide content, insights, products and solutions to the Industry to support their business and catalyse credit penetration and financial inclusion.
About TransUnion CIBIL
TransUnion CIBIL is India’s leading credit information company and maintains one of the largest repositories of credit information globally. We have over 2700 members–including all leading banks, financial institutions, non-banking financial companies and housing finance companies–and maintain more than 600 million credit records of individuals and businesses.
Our mission is to create information solutions that enable businesses to grow and give consumers faster, cheaper access to credit and other services. We create value for our members by helping them manage risk and devise appropriate lending strategies to reduce costs and increase portfolio profitability. With comprehensive, reliable information on consumer and commercial borrowers, they are able to make sound credit decisions about individuals and businesses. Through the power of information, TransUnion CIBIL is working to support our members drive credit penetration and financial inclusion for building a stronger economy
We call this Information for Good.