Home Loans: HDFC Ltd approves highest ever home loans of Rs 2 lakh crore in FY22

Mortgage lender HDFC Ltd. Reportedly approved retail home loans totaling more than Rs 2 lakh crore in the current financial year, its highest on record for a financial year. Last year, the lender processed home loans worth Rs 1.55 lakh crore, recording an annual growth of 30% as demand for homes surged. Low interest rates, stable real estate prices, and state-level stamp duty reductions have all contributed to the growth of the housing finance segment.

“In more than four and a half decades, I have not seen a better time for the housing sector than today due to lower interest rates, stable house prices, government’s push on affordable housing, improved affordability, favorable demographics, increasing urbanization and rising aspirations,” said Renu Sud Karnad, Managing Director – HDFC Ltd. “The residential real estate segment will continue to see strong traction going forward, as housing demand is not just pent-up demand, but structural.”

In a statement, HDFC said it was focused on digital initiatives and the inherent demand for housing helped meet the Rs 2 lakh crore target. The mortgage lender set up a digital platform for retail loans and deposits, launched “HDFC Customer Connect” for all customer inquiries and launched virtual offices for customer services.

More than 89% of its retail loans are contracted online, compared to less than 20% before the Covid-19 pandemic.

“Over the past year, we’ve seen a strong pipeline of new launches surpassing pre-pandemic levels,” Karnad said. “We are seeing healthy demand in metros and non-metros and demand is prevalent in affordable and premium markets. The sweet spot for housing is still in the price range of Rs 50 lakh to Rs 1 crore.

The government’s focus on housing is allowing more households to become homeowners. The credit-linked grant scheme under the PMAY yojna has also helped more households in both urban and rural areas.

HDFC continues to have the largest number of home loan customers over 2.7 lakhs who have taken advantage of the benefits of the Credit Linked Subsidy Scheme (CLSS). As of December 31, 2021, the Company’s cumulative loans disbursed under the CLSS was ₹45,914 crore and the cumulative grant amount was ₹6,264 crore.

For the nine months ended December 31, 2021, 30% of home loans approved by volume and 13% by value were granted to customers in the Economically Weaker Section (EWS) and Low Income Groups (LIG).

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