MUMBAI : Lenders are hitting the brakes on disbursing sanctioned home loans, unwilling to take risks. Home loans make up over 50% of the retail loan sector.
As per industry watchers, a number of banks and NBFCs have been reappraising sanctioned loans, carefully vetting the borrower’s financial condition since the lockdown began in March.Jorty M.
Chacko, executive director, IDBI Bank said the bank was evaluating home loan disbursements to understand the repayment capacity of borrowers. “The risks associated with retail lending have undergone considerable shift owing to covid-19 and we have tightened the norms to take care of such risks.