The average home loan ticket size increased to over Rs 26 lakh in 2020 despite the pandemic

Revival in sentiments is attributed to the remarkable upturn seen in the real estate business, especially in the residential segment, in the third quarter of 2020 as a result of the unlocking process

MobiKwik has helped disburse 800,000 loans in one year with an average ticket size of Rs 10,000. The company doesn't lend from its books. At the back-end, there is a network of banks and NBFCs, but it executes everything else -- from user selection, credit underwriting, policy, loan journey to disbursal and collection process

Amid a slowing economy and falling income levels, NBFCs are staring at fresh challenges. However, some are doing well

Access to easy credit is often so tempting to young borrowers that they end up ruining their credit profiles, which significantly diminish their ability to take loans in future

How new CEO Ravneet Gill is managing troubles at the new-generation Yes Bank, where there is no end to asset quality surprises and capital levels are inadequate for future growth

The auditors recently noted that the company's ability to raise funds has substantially impaired and the business has come to a standstill because of challenges in fresh disbursements

The largest private sector bank, HDFC Bank, is looking to grow in semi-urban and rural markets.

Of the 10 million shortage in urban homes sought to be bridged by 2022, only around 800,000 'affordable' homes have since been built in urban centres.

These forced loans on banks not only put a burden on the lenders, but also indirectly impact the government exchequer as the public sector banks will have to be recapitalised with the tax payer's money at some later date.

\"Growth on an all India basis is reasonably robust with peripheries of metros, tier II and tier III towns being extremely strong,\" says Renu Sud Karnad, MD, HDFC Ltd, in an interview with Naveen Kumar, where she shares her views on a range of issues affecting the real estate and home loan sectors in India.

Affordable housing is picking up pace, thanks to proactive policies and savvy investors/developers. But sustaining the momentum is a tall order.

To put things in perspective, India's largest lender SBI's home loan book reportedly stands at Rs 3.13 lakh crore - it is the market leader in the space, pipping the country's largest housing finance provider, Housing Development Finance Corporation (HDFC)

In the RBI's Financial Stability Report, the apex bank said that the Gross NPA (GNPA) ratio of scheduled commercial banks (SCBs) is likely to rise in the current fiscal.

While the country debates the impact of RBI's 25 basis points hike in the repo rate - the first hike in four years - the affordable housing segment has much to cheer about with the RBI raising the home loan limits for priority sector lending (PSL) by 25 per cent.

The Reserve Bank of India's Monetary Policy Committee (MPC) today hiked the key repo rate by 25 basis points (bps) to 6.25 per cent. This means all bank loans are now likely to become more expensive.