Q2FY24 Sees 14% Growth in Individual Housing Loans, MIG Segment Dominates

Individual housing loans outstanding rose 14% to ₹33.53 lakh crore in Q2FY24, with the MIG segment leading the growth. Here’s a detailed look at the trends and factors driving this increase.

Housing LoansReal EstateNhbMig SegmentPmayReal Estate NewsMar 12, 2025

Q2FY24 Sees 14% Growth in Individual Housing Loans, MIG Segment Dominates

Real Estate News:The housing market in India continues to show strong momentum, with individual housing loans outstanding growing by 14% to ₹33.53 lakh crore in the second quarter of the fiscal year 2023-2024 (Q2FY24). According to data released by the National Housing Bank (NHB), the Middle Income Group (MIG) segment has been the driving force behind this growth, accounting for 44% of the total housing loan portfolio.

The robust growth in housing loans can be attributed to a combination of factors, including favorable interest rates, government schemes, and an improving economic outlook. The NHB report highlights that the MIG segment, which typically includes individuals with annual incomes ranging from ₹6 lakh to ₹18 lakh, has shown the highest demand for housing loans. This is a positive sign for the real estate sector, as it indicates a strong middle-class appetite for housing.

One of the key drivers of this growth has been the government’s Pradhan Mantri Awas Yojana (PMAY) scheme, which aims to provide affordable housing to all by 2022. The scheme offers various incentives and subsidies to first-time homebuyers, making it easier for them to secure loans and purchase homes. Additionally, the Reserve Bank of India (RBI) has maintained a accommodative monetary policy, keeping interest rates low to stimulate economic activity.

The EWS (Economically Weaker Section) and LIG (Low Income Group) segments have also seen significant growth, with loans outstanding increasing by 12% and 10% respectively. These segments benefit from various affordable housing schemes and subsidies, making homeownership more accessible to lower-income households.

However, the HIG (Higher Income Group) segment, which includes individuals with annual incomes above ₹18 lakh, has seen a more moderate growth rate of 8%. This can be attributed to the fact that the HIG segment often faces higher interest rates and stricter lending criteria, making it more challenging for them to secure loans.

The NHB report also noted that the overall housing loan portfolio is well-diversified across various income groups, which is a positive sign for the stability and resilience of the housing market. The diversification helps mitigate risks and ensures a steady demand for housing loans.

Looking ahead, the NHB expects the trend of strong growth in housing loans to continue, driven by ongoing government support, favorable economic conditions, and a growing middle class. The real estate sector remains optimistic about the future, with developers and lenders alike preparing for increased demand and expansion.

In conclusion, the 14% growth in individual housing loans outstanding in Q2FY24 is a testament to the resilience and potential of the Indian housing market. With continued support from the government and favorable economic conditions, the sector is well-positioned for sustained growth in the coming quarters.

The National Housing Bank (NHB) is a government-owned financial institution in India, established to promote and regulate the housing finance sector. It plays a crucial role in ensuring the availability of financing for housing projects and in promoting affordable housing across the country.

Frequently Asked Questions

What is the total outstanding amount of individual housing loans in Q2FY24?

The total outstanding amount of individual housing loans in Q2FY24 is ₹33.53 lakh crore.

Which income group has the largest share of housing loans?

The Middle Income Group (MIG) has the largest share of housing loans, accounting for 44% of the total housing loan portfolio.

What government scheme is supporting first-time homebuyers?

The Pradhan Mantri Awas Yojana (PMAY) scheme is providing various incentives and subsidies to first-time homebuyers.

How have the EWS and LIG segments performed in terms of housing loans?

The EWS (Economically Weaker Section) and LIG (Low Income Group) segments have seen a growth of 12% and 10%, respectively, in housing loans outstanding.

What is the expected trend for housing loans in the coming quarters?

The National Housing Bank (NHB) expects the trend of strong growth in housing loans to continue, driven by ongoing government support, favorable economic conditions, and a growing middle class.