Housing Loans by banks to soar in 2010 | Home loan demand to build up in 2010

With the economy poised for strong growth and confidence returning to the capital market, most players expect the demand for home loans to rise. says P.V.Sivakumar.

The year 2009 was a good one for housing loan borrowers. Banks rolled out the goodies for home loan borrowers in the form of low interest rate offers and special home loan packages. Stable property prices also helped. So, the demand for home loans was steady. With the economy poised for strong growth and confidence returning to the capital market, most players expect the demand for home loans to grow in 2010. Bankers expect disbursements to be around 25 per cent higher next year. The first half of 2009 saw a deceleration in the housing loan segment due to a combination of reasons including the overall economic slowdown, high property prices and high interest rates.

According to the Reserve Bank of India's Macroeconomic and Monetary Developments Second Quarter Review 2009-10, as on August 28, 2009, the year-on-year growth in home loans was 5.4 percent.