Non-bank lenders’ belongings beneath administration are more likely to develop by 12-13 per cent, down from 14 per cent within the previous fiscal, regardless of a slew of tailwinds, the report by Crisil stated.
The challenges confronted by non-bank lenders embrace “intense competitors” from banks, which proceed to dominate the prime house mortgage section, it added.
“Public sector banks have upped the ante and surpassed prime-focused housing finance corporations (HFCs) final fiscal and within the first half of this fiscal,” the company’s director Subha Sri Narayanan stated.
Narayanan stated competitors in pricing is clear from the sturdy progress in lower-interest-rate house loans of banks, because the share of the sub-9 per cent rate of interest portfolio elevated to over 60 per cent as of March 31, 2025, from 45 per cent final yr.
“Many massive HFCs are dealing with elevated buyer churn by stability switch instances,” Narayanan added.Homeloan is the most important section within the mortgage belongings beneath administration for the non-bank lenders, contributing 59 per cent of the pie, Crisil stated.Within the latest previous, some lenders have flagged considerations on the “irrational” charges provided by competitors, particularly state-run lenders, within the house mortgage market and attributed the identical to slower house mortgage progress.
The ranking company stated the expansion is slowing down at the same time as structural drivers for the house mortgage section are holding up, together with low mortgage penetration and rising urbanisation. Affordability indicators are additionally supportive as disposable incomes proceed to outpace an increase in home costs amid decrease rates of interest.
Moreover, the revisions in earnings tax slabs and the GST rationalisation additionally emerged as main elements.
Aside from competitors, the company stated an anticipated moderation in residential actual property gross sales progress in worth phrases throughout the highest seven cities is one other problem confronting the non-bank lenders.
The general AUM progress on the mortgage aspect shall be steady at 18-19 per cent in FY26 in opposition to 18.5 per cent in FY25, the company stated, attributing it to quicker progress in wholesale lending.
The AUM progress is anticipated to decelerate within the case of loans in opposition to property to 27-29 per cent from 32 per cent in FY25, the company stated.