Small borrowers struggling to service home loan
Statistics show that Public sector banks are facing the problem of high delinquencies in the home loan segment up to Rs 5 lakh.
High interest rates and sticky inflation have hampered the ability of small borrowers to service home loans.
Home loans in two slabs — up to Rs 2 lakh and Rs 2-5 lakh — have registered the maximum delinquency in public sector banks for FY12. At March-end 2012, bad debts rose to 11.03 per cent of the outstanding home loans in the Rs 2-5 lakh slab, from 4.90 per cent in the previous year.
Home loan borrowers in the economically weaker section (EWS) and low-income group (LIG) categories are worst hit by the almost 200-basis-point rise in lending rates over the last couple of years.
bad debts, Economically Weaker Section (EWS), high delinquencies in loan, home loan, Home loan borrowers, Home Loan Interest rate, home loan segment, Home loans, Inflation, Lending rates, Loans, low-income group (LIG), Public sector banks
