The default on affordable housing loans rose to a high of 7.2 percent
MUMBAI: The impact of the economic crisis created by the Corona epidemic is now being felt in the affordable housing loan finance sector as well. For Affordable Housing Finance Companies (AHFCs), arrears of more than 90 days have risen to 6.5 per cent in June from 3.1 per cent in March. In other words, defaults are also on the rise in the affordable housing loan segment. Rating agency Iqra said the quality of the property had deteriorated since the first wave of the epidemic in 2020. Also, the collection of housing finance companies has been severely affected by the second wave of Corona epidemic in the first quarter of the financial year and the impact of severe lockdowns in some states. Notably, there was no relief this time around as there was a long moratorium on bank loans during the first wave of the Corona epidemic last year. In March 2020, the arrears for more than 90 days were 3.7 per cent. The classification of arrears as NPAs for a period of ninety days or more has increa...