Demand for Home Loans Will Continue to Grow in the Future: Reserve Bank of India..


THE demand for housing loan will continue to grow in the future. But, there was a need to develop more statistical tools to gauge the evolving trends, Reserve Bank of India (RBI) Executive Director Mr. Deepak Mohanty on recently said.

“Keeping in view the demand-supply gap, our favourable demography, increasing urbanisation  &  growth prospects, the demand for housing finance

will continue to grow,” he said speaking at RBI’s Statistics Day conference.however, he said the changing business cycles can impact household and banks’ balance sheets, and hence, there is a need to develop a database on housing finance. “Risks also arise to household and bank balance sheets due to fluctuations in prices and changes in the business cycle.Hence, there is a need for developing a data base on housing finance.”


Mr. Deepak Mohanty said at present there are two (2) housing price indices sector regulator NHB's Residex, which includes data from 20 cities, and RBI’s own index, which covers nine (9) cities.

Mr. Deepak Mohanty said information such as the loan - to - value (LTV) ratio, equated monthly instalments (EMIs) to income ratio, price - to - income ratio & borrowers’ characteristics are also very important.


Speaking on challenges on the statistical front for the central bank, Mr. Deepak Mohanty pointed out that it needs to device methods to make better use of granular data from banks. 
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