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Home loan market grew nearly 30% in last five years: National Housing Bank

03:21 PM Aug 30, 2021 | FPJ Web Desk

The property market in India has been growing by leaps and bounds. Mortgage lending has increased from 1 percent of GDP in 1990 to almost 11 percent of GDP now, with a total value of approximately Rs 27 lakh crore.

According to Rahul Bhave, Executive Director of National Housing Bank, CAGR of over 30 percent over the last five years, the development potential is enormous. “The sector has performed admirably even throughout COVID. In comparison to the previous year, distribution increased by 185 percent in FY 2021. Banks provided over 65 percent of these loans, while HFCs provided the rest. In the housing sector, the entire game has changed, and technology is influencing the industry.”

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Mortgage lending has increased from 1 percent of GDP in 1990 to almost 11 percent of GDP now, with a total value of approximately Rs 27 lakh crore, he said.

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Accelerate digitisation: Amitabh Kant

The need of the hour is to accelerate digitization in India, stressed Amitabh Kant, Chief Executive Officer of NITI Aayog the innovation government Think Tank. “In keeping with India's ambitions to become a knowledge-based economy, the transformation of mortgage lending and connecting the property ecosystem will expedite the speed of socio-economic change in the country," said Kant.

Dr M.S. Sahoo, Chairperson of Insolvency and Bankruptcy Board of India, asserted that technology is increasingly making a difference to the market economy. “Mortgage lending benefits from the digital processes, and market economy needs the valuation of different assets. Uniformity of standards in valuation is the need of the hour, and it is vital to encourage technology to facilitate the valuer community,” he said.

The government of India has been aggressively driving digitisation, and the COVID-19 pandemic has leapfrogged digital by 5 years, said Shanti Ekambaram, Group President – Consumer Banking at Kotak Mahindra Bank, said. This means the financial ecosystem and players in it have to move quickly to digitise every aspect. "Mortgage is one of the core needs in India, and it is important to create an ecosystem of all players powered by technology," she said.

Carmen Vicelich, Founder and Global CEO of Valocity, said digital innovation is imperative in the evolving landscape. “Investing in real estate is for many an emotional activity as people are buying their home, and collaboration is critical to the sector's progress.”

R V Verma, Non-Executive Chairman of Valocity, and ex-Chairman and Managing Director of National Housing Bank, said purchasing a property is a complex issue particularly in India. It is complex, and there are plenty of gaps which we are trying to address through reform agenda. “The market infrastructure development, transparency and standardisation is a key aspect of the stability of the mortgage industry – which is increasingly demand and consumer driven.”

“Digitization will add a lot of value and enhance efficiency,” he continued. The mortgage business is on the verge of explosive growth. Now is the time to seize the opportunity to implement digitization. It'll be a win-win situation for everyone, and it'll be a fantastic opportunity to make the mortgage market more competitive.”

Experts from various industries, including regulatory organizations, banks, and embassies, convened for a webinar to discuss the role of technology and digital in the property valuation assessment and mortgage ecosystem.

The webinar was organized by Valocity which offers a cloud-based technology platform that digitises the workflow for lenders to connect and manage their Valuation panels.

Based in Mumbai and Delhi, Valocity offers a cloud-based platform that connects the ecosystem of lenders and

valuers to transform mortgage lending through digitized valuations and property analytics. The

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