Overall, it was a good year for the Indian real estate sector given the circumstances.
The RBI has not changed lending rates for some time. It is difficult to predict a change over the next few quarters, but we can expect the trend of low interest rates to continue. This has sparked a trend of home buying and budget-friendly house purchases in major cities. It is a situation that allows all stakeholders to win together. That shouldn’t change anytime soon. If the property price is right, chances are you’ll get a great low-interest deal to go with it in 2022.
My favorite bet in the mortgage market for 2022 is the shift to digital credit.
It all started with the first full lockdown to curb the spread of COVID in 2020. Banks and policymakers were forced to simplify their lending procedures. From KYC video to virtual app, the home loan journey has started to get easier. The biggest disruptor is never just technology, but a player seizing an opportunity to take advantage of changing dynamics.
In my opinion, going this full route is the biggest trend because it democratizes the process for borrowers on the one hand (access, better rates and ease of application) and on the other hand, becomes a trusted partner for banks .
In my view, digital home lending markets will lead to a paradigm shift in the home lending market in 2022. They will change consumer behavior, simplify home lending, and replicate what fintech has already done in other areas such as insurance, trade and personal loans.
Last but not least, a market is always understood through its numbers, making pre-pandemic 2019 home loan volumes a benchmark to pursue. I am optimistic that 2022 will see the establishment of new benchmarks and that the purchase of a house will also stimulate mortgages. If you’re a consumer, watch out for great home and mortgage loan deals in 2022. If you’re part of the home selling or banking ecosystem, well, this is indeed the hottest year. exciting to reap the rewards of growth after a few difficult quarters for the sector.
–Pramod Kathuria, co-founder and CEO of Easiloan. The opinions expressed in this article are his own.