Loan disbursements slowdown to impact borrowers
A continued slowdown in loan disbursements by housing finance company, owing to tight liquidity condition, could have a spillover impact on retail home loan borrowers and property developers, says a report. Loan disbursement in the four quarters to September 2018 averaged ?25,000 crore per month for large six Housing Finance Companies (HFCs). Following September 2018, per month average disbursement fell to ?13,500 crore, as few large HFCs faced serious challenges. “HFCs have slowed down their loan disbursements, which can have a spillover impact on both retail home loan borrowers and property developers,” India Ratings and Researchs (Ind-Ra) said in a report. It said tight funding in the housing finance industry has not only impacted fresh loan disbursement, but also loans where disbursements are linked to construction, thereby impacting a large number of home buyers, who could face challenges, to service their commitments to property developers.
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