Rising Fortunes: How Affordable Housing Finance Companies are Reshaping the Mortgage Landscape
Icra reports a significant rise in assets under management for affordable housing finance companies over the next three years. Mortgage portfolios of non-bank lenders are projected to grow, driven by robust demand and limited alternative credit options. The sector exhibits strong performance with low loan losses and healthy returns.
- Country:
- India
Icra has forecasted a significant growth trajectory for affordable housing finance companies (AHFCs), predicting their assets under management will climb to Rs 2.5 lakh crore from the current Rs 1.4 lakh crore within three years. This growth is a testament to robust consumer demand and limited alternative credit options.
The mortgage portfolios of non-bank lenders are also expected to witness expansion, with projections suggesting it will reach Rs 20 lakh crore by March 2028, up from Rs 13 lakh crore in 2025. This surge is primarily driven by increased demand for retail mortgage loans, particularly in the affordable segment.
Despite the increased competition from larger players, AHFCs maintain an edge due to their focus on self-employed borrowers and loans against property, segments that contribute to a low non-performing asset ratio. However, experts stress the need for operational efficiency and prudent credit policies to sustain growth in this dynamic market.
(With inputs from agencies.)
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