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As of September 30, 2024, the EWS and low-income group (LIG) accounted for only 39% of outstanding home loans while MIG made up 44%.
EWS and LIG account for 39% of outstanding home loans.
Outstanding individual home loans in the country surged 14 percent year-on-year, reaching Rs 33.53 lakh crore by the end of September, with the middle-income group (MIG) accounting for the largest share of borrowing. This data comes from a report released by the National Housing Bank (NHB), a statutory body under the Centre, highlighting key trends and progress in the housing sector.
The report revealed that as of September 30, 2024, the economically weaker section (EWS) and low-income group (LIG) accounted for 39% of outstanding home loans, while the middle-income group (MIG) made up 44 percent. The high-income group (HIG) held the remaining 17%.
The NHB report provided a comprehensive overview of the housing sector, including trends in house prices, the performance of housing finance companies (HFCs), and the role of primary lending institutions (PLIs) in extending housing credit. It also examined major government initiatives such as the Pradhan Mantri Awas Yojana (PMAY) for both rural and urban areas, the Urban Infrastructure Development Fund (UIDF), and the Affordable Rental Housing Complex (ARHC) scheme.
The outlook for the housing sector remains positive, supported by recent budget announcements related to PMAY 2.0 and the ongoing push for urbanisation. NHB noted that housing finance companies played a pivotal role in meeting the diverse needs of homebuyers, offering flexibility in eligibility criteria, strong customer service, and faster loan processing times.
However, regional disparities in housing credit remain a major challenge. NHB highlighted that the bulk of housing loan disbursements occur in the southern, western, and northern states, while credit flow remains weak in the eastern and northeastern regions. The branch network of housing finance companies is also thin in the northeastern part of the country, further limiting access to credit.
Efforts are underway to bridge these gaps. NHB said the government and regulators are working to improve housing credit reach in underserved regions through co-lending models, which aim to combine the liquidity of banks with the reach of housing finance companies. This strategy is expected to enhance access to housing loans for those currently excluded from the formal credit system.
