In July, Square Capital conducted a nationwide survey on home loan trends. Home loans are one of the fastest growing loan variants in India today. The reach I now spreading, thanks to investments in technology and distribution. Here are some insights on the same.
When you think of applying for a Home Loan, which are the top three lenders that come to your mind?
ICICI, HDFC and SBI remained the top favorites with maximum respondents mentioning this as their favorites. Around 80% of respondents to the survey mentioned HDFC in their responses. Other lenders mentioned frequently by respondents include public sector banks like Bank of Baroda, Corporation Bank and Punjab National Bank.
What is the order of preference for choosing a lender basis below categories of lenders? (Please give your preference as 1 to 4, 1 being top preference and 4 being least)
We gave the respondents 4 categories to pick from. They are listed below in order of preference as chosen by survey respondents.
1 – NBFCs
2 – Public Sector Banks
3 – Private Banks
4 – Foreign Banks
What is the order of criticality of the below criteria, that goes into deciding which bank to choose for taking a Home Loan? (Please give your preference as 1 to 5, 1 being top preference and 5 being least)
In order of preference, from highest to the lowest, the list reads
1 – Rate of Interest –
2 – Expected Loan Amount
3 – Processing & Documentation Charges
4 – Brand Name of the Lender
5 – Speed of processing the loan
What is the preferred mode for applying for the Home Loan? (Please give your preference as 1 to 3, 1 being top preference and 3 being least)
Online Channels (E.g. Square Capital) – This option gained maximum responses as users opted it as their preference
Offline Channels (DSAs of Banks) – Offline channels trailed to third preference
Direct Approaching of the Bank – Respondents picked it up as the second best option to apply for a home loan
What would be your preferred option in taking a Home Loan?
Out of the two options given Single Applicant or Joint Applicant with Spouse or other Relationship the latter clearly held more votes from our survey takers. Around 53.8% of respondents stated their preference for joint applications highlighting a trend of shifting from single ownership.