ANI
11 Jul 2025, 10:01 GMT+10
New Delhi [India], July 11 (ANI): The next phase of India's retail credit growth is expected to come from a rise in credit per borrower, mainly driven by the housing loan segment, according to a report by Bernstein.
A major part of this growth is expected to come from the affordable housing segment.
The report highlighted that mortgages are set to become the key driver of retail credit growth in the country.
It stated, 'We expect the next leg of growth to come from rising credit per borrower, led by mortgages.'
Affordable mortgages, with a ticket size that offers around 3 per cent Return on Assets (RoA), represent a USD 500 billion lending opportunity.
The key factor for success in this area will be lenders' ability to scale and replicate their operating models consistently across multiple states in India.
Over the past decade, the biggest value creation stories in the credit sector were based on expanding access to formal financing.
During this period, more than 200 million new consumers were added to the credit system, with the number of borrowers growing faster than the total loan volume.
Now, the report highlighted that with around 60 per cent of the Indian labour force having access to credit, the next leg of growth to be powered by an increase in the amount of credit each borrower takes, particularly in the form of mortgages.
A mortgage is a loan taken to buy a house or property, where the borrower repays the amount in instalments and the property acts as security for the loan.
The report pointed out that mortgage penetration in India is still low at around 11 per cent of GDP. This is far behind China, where it stands at about 30 per cent, and significantly lower compared to developed markets, where mortgage penetration exceeds 50 per cent.
On the other hand, non-mortgage retail credit in India already accounts for more than 30 per cent of GDP, which is higher than in many emerging and developed markets.
The report estimates that a steady rise in mortgage penetration over the coming years could create a USD 1.5 trillion mortgage opportunity in India by FY35. (ANI)
Get a daily dose of India Gazette news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to India Gazette.
More InformationNEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
AMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...
NEW YORK, New York - U.S. stocks rebounded Tuesday with all the major indices gaining ground. Markets in the UK, Europe and Canada...
NEW YORK CITY, New York: Financial markets kicked off the week on a cautious note as President Donald Trump rolled out a fresh round...
RIO DE JANEIRO, Brazil: At a two-day summit over the weekend, the BRICS bloc of emerging economies issued a joint declaration condemning...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
New Delhi [India], July 11 (ANI): Ireland batter Peter Moor has announced his retirement from international cricket at the age of 35...
New Delhi [India], July 11 (ANI): The next phase of India's retail credit growth is expected to come from a rise in credit per borrower,...
Rajouri (Jammu and Kashmir) [India], July 11 (ANI): Ultra-high-density apple farming is transforming the horticulture sector in Rajouri...
New Delhi [India], July 11 (ANI): Indian stock markets opened under pressure on Friday as continued tariff tensions led by US President...
Bhubaneswar (Odisha) [India], July 11 (ANI): Commuters in Odisha face inconvenience as transport services are disrupted due to the...