Thursday, June 15, 2023

During festivals, fewer people buy homes: report


MUMBAI: In India, buying a home during the festive season is less appealing. This is clear because, in recent years, the value of home loans taken out during the holiday season (October to December) has consistently decreased. Personal, auto, two-wheeler, and consumer durables loans have all grown steadily, but home loans have fallen.

The festive season (Q3) in FY23 saw significant growth in both the value and volume of auto and two-wheeler loans, according to the report "How India Celebrates" from credit bureau CRIF High Mark. Home loans, however, decreased by 2. 6% during this time, making it the worst home loan quarter in recent memory. The rise in interest rates is largely to blame for the decline in home loans.

From Rs 60,900 crore in Q3FY22 to Rs 75,500 crore in Q3FY23, auto loans saw a remarkable 24% increase in originations (value). In a similar vein, loans for two-wheelers saw a significant 34. 5 percent increase in originations (value), soaring to Rs 23,000 crore in Q3FY23 from Rs 17,100 crore in Q3FY22. There was also a significant 20 percent increase in the personal loan market. 2 percent in originations (value), from Rs 1,58,500 crore in Q3FY22 to Rs 1,90,500 crore in Q3FY23.

The report's further analysis reveals important trends in major retail loan products. The value of originations in the auto loan category increased by 24%, with an average ticket size increase of 18. 5 percent from 6 5 lakh to Rs 7 in Q3 FY22 75,000 in Q3 of FY23. During the third quarter of FY23, nonbanking financial companies (NBFCs) dominated volume while public sector banks dominated originations (value).

The number of loans for two-wheelers increased by 34. 5 percent, and the average ticket size increased by 12 percent from Rs 75,000 in Q3FY22 to Rs 84,000 in Q3FY23.

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