The Nifty and Sensex have been bullish ever since the unlock post Pandemic. And since WFH and online schooling seems here to stay for a bit longer, the home loan segment has seen a massive upswing. Sparing no time before the much-apprehended lockdown again, new home buyers are out on a spree. As such, home loans disbursals registered a 75 percent increase in the April-September 2021 frame as opposed to the corresponding period in the previous fiscal.
The Gujarat State Level Bankers’ Committee (SLBC), in its 17th Annual Report tabled Friday in the city, noted that housing finance disbursals stood at Rs 9,232 crore, up from Rs 5,283 crore from the same period in 2020. According to M.M. Bansal, convenor, SLBC Gujarat, there has been a huge rise in construction activity. The number of home loan accounts to which funds were allotted, also increased by 44 percent from 47,411 to 68,397.
“Loans are set free as construction progresses. The demand for a better and bigger house is at the crux of the upswing. Investors who had shelved their long-term wish to invest in a farmhouse or weekend home, too are all about realizing their wish. The interest rate is as low at 6.5 percent in some cases,” explained Ajay Patel, chairman, Credai Gujarat.
Financial experts point at the real estate segment opening up because of middle-class and high-income groups looking at a place of their own. “Unfortunately, the low-income groups still have to recover from the pandemic-inflicted losses and so, the demand for modest budget homes is relatively low,” added Mr Patel.