As of September 2024, jap and northeastern states have considerably decrease shares, with jap states accounting for simply 6.90% and northeastern states contributing solely 0.93% of the entire particular person housing loans, highlighting a stark under-penetration in these areas.
Fourteen states, together with Maharashtra, Karnataka, Tamil Nadu, Telangana, Gujarat, Uttar Pradesh, Andhra Pradesh, Rajasthan, Kerala, Haryana, Delhi, West Bengal, Madhya Pradesh, and Punjab, collectively contributed almost 91% of the entire house mortgage excellent.
By September 2024, the Southern area had a complete house mortgage excellent of Rs 11.84 lakh crore, adopted intently by the Western area at Rs 10.30 lakh crore. The Northern area had Rs 8.57 lakh crore in whole excellent house loans, whereas the Jap area trailed with solely Rs 2.31 lakh crore in house mortgage excellent. Of this, northeastern states accounted for a mere Rs 31,341 crore, the NHB report famous.
To handle this disparity, the federal government and regulators have launched the co-lending mannequin. This initiative goals to leverage the liquidity of banks and the intensive attain of Housing Finance Corporations (HFCs) to supply formal housing credit score to underserved populations, particularly on the backside of the pyramid. The report emphasised that the altering financial dynamics in Tier-2 and Tier-3 cities have led to elevated demand for housing in these areas.
“Authorities and regulators are persistently working in direction of growing mortgage penetration in underserved areas,” the NHB report said. “The co-lending mannequin is designed to harness the liquidity base of banks and the attain of HFCs to ship formal housing credit score and increase housing credit score stream, significantly in rising city facilities.”As of September 30, 2024, the entire house mortgage excellent throughout the nation stood at Rs 33.53 lakh crore. Public sector banks held the biggest share at 43.8%, adopted by non-public sector banks at 37.5%, and housing finance firms at 18.7%.
Within the first half of fiscal 12 months 2025, whole house mortgage disbursements amounted to Rs 4.10 lakh crore. Public sector banks contributed 42.5% of this, or Rs 1.74 lakh crore, whereas non-public sector banks disbursed Rs 1.47 lakh crore, making up 35.8%. Housing finance firms accounted for 21.7%, or Rs 89,075 crore. Notably, almost 33% of the disbursements made by HFCs within the first half of FY 2025 went to the economically weaker sections and lower-income teams.