Home Loan borrowers may have repaid higher amounts
Mortgage disbursals are far exceeding the amount of outstanding home loans indicating faster industry-level growth and a pronounced revival in incomes that has prompted end-users to prepay liabilities or reduce debt through lump-sum part payments ahead of schedule. An analysis of data showed that higher repayments and prepayments optically limit the pace of mortgage expansions. In FY23, for instance, the combined outstanding home loan portfolio of public sector and private banks and housing finance companies, which account for a big majority of the home loan market in the country was, Rs 3.62 lakh crore. But disbursements were much higher - at Rs 8.08 lakh crore. In FY24, State Bank of India, which has 25 percent of market share, said its outstanding portfolio rose 13 percent disbursements rose 17 percent and sanctions rose 21 percent. For Bank of India, the outstanding home loans rose Rs 8,000 crore in FY24, while disbursal rose Rs 23,000 crore. With the revival of the economy and improvement in the income levels, sizable borrowers of home loans are using their surplus funds to repay and prepay their loans so that the interest burden is also less, said a senior analyst with a rating agency. In FY23, for instance, the combined outstanding home loan portfolio of public sector and private banks and housing finance companies, which account for a big majority of the home loan amrket in the country was, Rs 3.62 lakh crore .
