HDFC Approves Rs 2 Lakh Crore In Home Loans In FY22

Housing Development Finance Corp. approved highest-ever loans by value in the current financial year as demand for homes continues to grow.

India's largest mortgage lender approved Rs 2 lakh crore in home loans in 2021-22, according to its exchange filing on Wednesday. That compares with Rs 1.55 lakh crore worth of loans approved in FY21.

"The demand for housing continues to be from first-time homeowners as well as those moving up the property ladder—generally into larger homes," Renu Sud Karnad, managing director at HDFC, said in the release.

The company is seeing healthy demand across metros and non-metros and it's prevalent in affordable as well as high-end markets, Karnad said.

As of Dec. 31, 2021, HDFC's gross loan book stood at Rs 6.2 lakh crore, with 79% of the book coming from individual home loan borrowers, according to the company's last investor presentation.

During the first nine months of the current financial year, individual loan approvals and disbursements grew 45% and 48%, respectively, over a year earlier, according to earnings data available for the first three quarters.

Demand for home loans strengthened significantly in the aftermath of the pandemic. The category has led growth across the retail lending segments. While numbers across banks and non-banks collectively is not available, for banks, home loan disbursals rose 15% in January over a year ago, according to data available with the Reserve Bank of India.

Home loan rates have fallen sharply, with a number of banks offering to lend at as low at 6.5%. Low policy interest rates and easy liquidity has prompted banks to step up lending to the home loan segment, which has among the lowest default rates.