Rising share of non-housing loans, dilution in lending norms make HFC portfolios vulnerable: Icra

Mumbai: The share of housing loans in the overall housing finance company portfolio has been declining even as housing loans continue to dominate the loan portfolio owing to the higher pace of growth of non-housing loans, said a rating company.

This trend has been revealed in a report covering various portfolio cuts of 28 HFCs, which account for over 75% of the overall housing loan portfolio of HFCs as on March 31, 2017, said Icra.

However, the non-housing loan books of small HFCs largely consists of loans against property, which accounted for 25% of the total loan book as on March 31, 2017 compared with 14% for all HFCs. As for the new HFCs operating in the affordable segment, the share of home loans at 83% as on March 31, 2017 is significantly higher than all HFCs.