The new DDA flat buyers, who will pay between Rs 700,000 and Rs 77 lakhs (Rs 7.7 million), will gain from the 9.25 per cent interest rate ceiling on new home loans of up to Rs 20 lakhs (Rs 2 million).
But a majority of the existing borrowers of private and public sector banks and housing finance companies will miss out on the government-driven initiative.
According to Indian Banks' Association data, at the end of March 2008, home loans up to Rs 20 lakh (Rs 2 million)accounted for nearly 80 per cent of the total portfolio, which was estimated at Rs 2,55,653 crore (Rs 2,556.53 billion).
In terms of number of borrowers, the share was similar, though detailed data are unavailable.
Bankers said a majority of the borrowers, who had accessed housing finance facilities, had borrowed less than Rs 20 lakhs (Rs 2 million).
For instance, in case of State Bank of India, which had a market share of 18 per cent at the end of September this year with total home loans outstanding of around Rs 51,000 crore (Rs 510 billion), the average size was Rs 600,000-800,000,
a senior bank executive said.
A Bank of Baroda executive said the ticket size of home loans is Rs 600,000-800,000, which is the average for public sector banks. Most of the loans are concentrated in urban and semi-urban areas.
"The scheme should broadbase the home loan business in the Rs 500,000-20 lakhs (Rs 2-million) category," a Bank of Baroda executive said.
The number of home loan accounts in small towns and semi-urban and rural areas is substantial, the executive said.
Even in case of private sector lenders, the situation is much the same. Axis Bank said majority of its borrowers have opted for home loans below Rs 20 lakhs (Rs 2 million).
While HDFC, the country's largest mortgage player, did not disclose the data, it said that a majority of the loans were below Rs 20 lakhs (Rs 2 million), with the average ticket size at Rs 15 lakhs (Rs 1.5 million).
A Dewan Housing Finance executive said 80 per cent of the disbursements were less than Rs 20 lakhs (Rs 2 million), with the average loan size estimated at around Rs 600,000.
