Loans for housing

Housing is a sub-category of construction. Though a map of construction is separately shown, housing loan is an important category to understand on its own. This is because, traditionally in many locations, housing activity is financed through accumulated capital out of personal savings. In recent times, with the reduction in interest rates and availability of banking sector to finance housing loans, this has become an important part of overall bank finance, contributing to regional growth too. Typically, housing loans provide a longer tenure of repayment as well as lower interest rates. The government has continued to offer tax benefits to this sector in the form of a rebate on income tax on loan amount and interest repayments. Housing loans are provided for purchase of land (provided construction activity starts in the ensuing year), construction of new houses, conducting improvements on existing properties and purchase of already built housing properties.

Housing loans - Amount outstanding
This map shows the amount outstanding in a district under credit for housing, as on March 31, 2007.

Much of the central and north-eastern parts of India have low activity in this domain. New houses are typically constructed in areas that are expanding either due to natural growth of population or migration. The southern and eastern states have registered lower population growth rates, but have experienced higher inflow of migrants from rural areas.


Housing loans - number of accounts
This map shows the number of accounts in a district under credit for housing, as on March 31, 2007.

There is not much deviance between the number of accounts and amount outstanding as can be seen on the map.