The higher segment homes, the demand for
affordable housing remains high.
“I do not agree there is a slowdown in the demand
for houses, if there is any it must be the higher segment.“ said Mr. Atanu Bagchi, CFO, Can Fin Homes, a south based housing finance company
which has been growing at over 40% for the past 5 years.
“Most of our customers are first-time home buyers
who want to convert their rent into EMIs. Cheaper loans may encourage more
people to buy homes."
Now (2015 September), affordable housing is
defined as loans below Rs. 50 lakh in metropolitan cities and below Rs. 40 lakh
in other cities.
While families with annual income under Rs. 3
lakh are categorised as economically weaker section (EWS), family income in the
range of Rs. 3 lakh to Rs. 6 lakh are Categorised as low-income group.
Although detailed guidelines on quantum of
reduction will be issued later, the housing finance companies (HFCs) which
operate on a small ticket size would be the chief beneficiaries of this
measure.
In addition to this, banks also stand to benefit
from this measure as the capital need for affordable lending for economically
weaker section will be lower. However, the benefit to banks would be lower than
the housing finance companies due to higher average ticket sizes.
HFCs like
Can Fin Homes, Repco Home Finance, Gruh Finance & DHFL have an
average ticket size of less than Rs. 20
lakh.While Can Fin homes and Gruh Finance have large portions of their loans
below Rs. 15 lakh, DHFL, LIC Housing
Finance & Repco have more than 35% of individual housing loans which is
less than Rs. 15 lakh
No comments:
Post a Comment