Mortgage Financing industry, which was earlier known as the housing finance industry in India was estimated approximately at US $ 18 billion. In the recent years a significant change has been seen in the in the structure of the mortgage industry.
Currently the banks are gaining market share in direct housing finance segment. The share of commercial banks in the direct housing finance segment has increased from 27% in FY 2000 to 57% in the FY 2003.
Housing finance industry in India is growing at a fast rate but still of the total housing investment in India, financing through the organized sector continues to account only for 25% (Source: LIC Housing finance).
The top players in this industry are housing finance companies, commercial (local as well as foreign) banks, cooperative banks and other non-banking financial companies (NBFCs).It is believed that commercial banks are set to take the major portion in next years. Currently HDFC (Housing Development Finance Corporation) is the market leader and after it SBI (State Bank of India) stands. Other companies who have significant share apart from HDFC and SBI are ICICI (The Industrial Credit and Investment Corporation of India) and LIC (Life Insurance Corporation).
Mortgage To GDP Ratio In India
The Mortgage to GDP Ratio in India is very low in comparison to the other countries. The Mortgage to GDP Ratio means ratio of outstanding home loans to GDP. In the developed countries the ratio varies from 25% to 60%. The mortgage to GDP ratio in India was at 2.5% in the year 2001.
