India was among those countries that registered a very low housing loan penetration rate with the outstanding housing loan to the GDP being just 3 per cent as against 51 per cent in the United States, 54 per cent in the United Kingdom and around 10-12 per cent in other Asian countries, Keki Mistry, managing director, HDFC, said on Friday.
However, with increasing income, tax concessions on housing loans and easy-to-avail-and-repay housing loans, the scenario was expected to change significantly, Mistry said during the inauguration of the HDFC 'Budget Homes of Bangalore' property exhibition in Bangalore.
The potential in the home loan market sector was immense if India touches the average 12 per cent (outstanding loan to GDP) as several other Asian countries, he said.
"With more and more middle class families able to afford to buy homes, the sector is steadily growing," he said, adding that the HDFC loan disbursement was growing at the rate of 25-30 per cent annually.
The company, which had cumulatively disbursed in excess of Rs 75,000 crore (Rs 750 billion) so far, was aiming at a future disbursement target of close to Rs 20,000 crore (Rs 200 billion).
"The growing tax concession benefits had prompted more and more people to go in for home loans. As opposed to the Rs 15,000 tax benefit on interest in the 90s the same had grown to Rs 150,000 now. The tax deduction on principal repayment had also provided a spurt to people availing home loans," Mistry added.
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