Mumbai, June 30: The Reserve Bank of India (RBI) has released data showing a significant increase in outstanding home loans in the country. According to the data, home loan outstandings grew by a whopping Rs 3.4 lakh crore in the last one year, indicating a robust demand for housing finance.
The RBI data reveals that the outstanding home loans stood at Rs 22.2 lakh crore as of May 2024, up from Rs 18.8 lakh crore in May 2023. This represents a growth of 18.1% year-on-year.
The surge in home loan outstandings is attributed to various factors, including low interest rates, government incentives for homebuyers, and an increase in housing demand. The growth is also seen as a positive sign for the economy, as it indicates a revival in the real estate sector.
“The growth in home loan outstandings is a reflection of the improving health of the real estate sector,” said a senior economist with a leading bank. “It also indicates that the government’s initiatives to boost housing demand are bearing fruit.”
The RBI data also shows that the average home loan size has increased to Rs 25.6 lakh from Rs 23.4 lakh in the previous year. This suggests that homebuyers are opting for larger loans to purchase higher-value properties.
The growth in home loan outstandings is expected to continue in the coming months, driven by the ongoing demand for housing and the favorable interest rate regime.
