Female home loan borrowers in Tier 3 and 4 areas rise in FY22

In the financial year 2021 -- 22 FY 22, female home loan borrowers rose significantly in Tier 3 and 4 districts in India, according to a report by SBI Research on emerging trends in residential housing. According to the report released on Monday, the top 20 districts with the highest share of female borrowers in fresh home loan disbursal in FY 22 are mostly rural 6 districts are from Chhattisgarh, 3 from Gujarat and Haryana each. These districts have a 49 per cent female share in the total population, it added.

The pace of home loan portfolio and fresh disbursals also grew in sync.

The report mentioned that the total home loan portfolio outstanding increased by more than 10 per cent in FY 22, with districts in Tie 3 and Tier 4 areas growing at a much faster rate than Tier 1 and Tier 2 districts post-pandemic.

The compound annual growth rate CAGR of fresh disbursal showed higher growth in Tier 2, Tier 3 and Tier 4 districts.

The report says that tier 2 cities including Vishakhapatnam, Guwahati, Raipur, Surat, Vadodara, Jaipur, Lucknow, Dehradun and Tier 3 city Coimbatore have seen higher growth in housing prices.

The report noted that the rise in work from home and freelance jobs during the Covid 19 epidemic led to higher demand for homes in smaller cities and towns in FY 22, as per the rising trend of work from home and freelance jobs.

It also pointed out that the increased job opportunities and the lower cost of living had already led many to shift their bases away from over-crowded metropolitan cities. The Centre's infrastructure-focused schemes like AMRUT Atal Mission for Rejuvenation and Urban Transformation and Smart City projects also helped, according to the SBI report.

The Metropolitan Regions of Delhi National Capital Region or NCR Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Ahmedabad, Pune are considered Tier 1. State capitals and evolving areas are categorised as Tier 2 The districts are categorized as Tier 3 and 4 based on their urban population.