Home Loan - Small All Set to Dominate

Forget the metros it is the smaller cities and upcoming metros in India that are truly witnessing a housing boom. Sample this: just about every fourth household in sleepy Gangtok took loan to buy a residence from a scheduled commercial bank in 2006-07 over one-fifth of all houses in Bhubaneshwar did the similar in that period.

At an average of barely Rs 3.4 lakh per loan to buy dwelling, the residents of the Sikkimese capital could not be able to match the residents of the metros when it comes to the size of the loan amount. Then again, in terms of the sheer proportion of families that are borrowing to have a nest they can call their own, little-town India is on the march.

Having said that, in terms of the value of dwelling loans, Mumbai tops the list with a little under Rs 24,000 crore in 2005-06, the most recent year for which detailed data is out there. Delhi was the second with over Rs 16,000 crore, followed by Bangalore with over Rs 14,000 crore. Chennai witnessed a little far more than Rs 10,000 crore though in Hyderabad the quantity was over Rs 7,000 crore.

The metros absolutely dominate this list, even without such as suburban districts like Thane and Thiruvallur. How you rank the cities in terms of their propensity for dwelling loans depends on the parameters you pick out. A number of aspects like the volume of loans, the value of every loan, the proportion of households that borrowed or the typical borrowing per household comes into picture in the course of this valuation.

Appear at the typical value of every single loan account opened in 2006-07 and the list changes a lot. Noida now tops the list with Rs 10.5 lakh followed by Gurgaon with Rs 10.2 lakh and Delhi with Rs 9.8 lakh comes third. Mumbai, with an typical housing loan of Rs 7 lakh, is now put at eighth spot. It is a list that has the big metros and their immediate neighbors crowding the best of the list.

Appear at in terms of the average housing loan per household and there is yet another list. Noida and Gurgaon remain on best in this chart with Rs 1.49 lakh and Rs 1.29 lakh respectively, but Chandigarh and Chennai, with an typical of just over Rs 1 lakh, are now joint third though Delhi slips to No 17 with mere Rs .49 lakh.