Home loan originations declined 9 percent in the June quarter, according to a report released on Monday.
Credit information company TransUnion CIBIL said in a report that home loan volumes in value terms were at par with the same period a year ago.
The report said outstanding amounts on home loans grew by only 14 percent during the quarter, making it the slowest growth among all categories that constitute retail loans.
Interestingly, the decline in principal volumes and sluggish growth in outstanding balances have come at a time when the incidence of loan defaults has declined during the quarter, the report said. Advances outstanding for more than 90 days stood at 0.9 percent in June 2024, showing an improvement of 0.32 percent, the report said.
The unsecured loan category, including credit cards and personal loans, witnessed a decline on various fronts.
The report said outstanding amounts on home loans grew by only 14 per cent during the quarter, making it the slowest growth among all categories that constitute retail loans.
Interestingly, the decline in principal volumes and sluggish growth in outstanding balances have come at a time when the incidence of loan defaults has declined during the quarter, the report said. Advances outstanding for more than 90 days stood at 0.9 per cent in June 2024, showing an improvement of 0.32 percent, the report said.
The report said that “India’s retail credit inflation slowed in the quarter ended June 2024 as financial institutions tightened credit supply, especially on consumption-based products such as credit cards, consumer durable loans and personal loans,”.
The unsecured loan category, including credit cards and personal loans, witnessed a decline on various fronts.
