Affordable housing loans in tier 1 and tier 2 areas see uptick

Small-ticket affordable housing loans in tier 1 and tier 2 cities and rural areas have seen an uptick, as banks focus on retail loans in these areas to drive credit growth, said people aware of the matter. The government wants banks to push credit through schemes such as PM Awas Yojana PMAY Housing loans, including priority sector loans, grew 6.4% year-on-year in March, according to the latest data. A senior executive of the State-owned Central Bank of India said there was definitely a demand in this segment, which is aided by various central and state government schemes. Most of these loans are secured because they get government subsidies, in the range of 3 -- 6%. The 11.4 million houses under PMAY Urban involving central assistance of 1.86 lakh crore have been sanctioned so far, according to the latest data. Nearly 9.29 million of the sanctioned houses have been grounded for construction - 5.44 million of these have been completed and the remaining are under various stages of construction. 22.9 million houses have been sanctioned under PMAY Rural. We were surprised by the growth this segment has seen in the last financial year. Agra Ajmer, Ujjain, Alwar, Bhiwani, Ujjain, and Bulandshahr, the disbursals for PMAY projects were a huge hit for us, said Atul Monga, CEO, BASIC Home Loans, and Ujjain, Alwar, Agra Ajmer and Bulandshahr.