Reverse migration has led to an increase in small home loans: Atul Monga, head of BASIC Home Loan

Small home loans have seen a surge due to reverse migration during the pandemic, said Atul Monga, managing director of BASIC Home Loan.

According to Monga, the pandemic has led to reverse migration and these workers now want to stay in their hometowns and therefore an increase in small affordable housing loans.

The company disbursed small affordable housing loans of less than Rs 10 lakh worth Rs 300 crore in FY22. Almost 75% of its loans were under the Pradhan Mantri Awas Yojana to this segment.

“We have been surprised by the growth this segment has seen over the last fiscal year. For us, disbursements for PMAY projects have been a huge success, especially in cities like Ujjain, Alwar, Bhiwani, Agra, Sonipat, Ajmer, Bulandshahr,” Monga said.

According to the latest data, under PMAY-U, 1.14 crore houses involving central assistance of Rs 1.86 lakh crore have been sanctioned so far. Of the sanctioned houses, 92.38 lakh houses were grounded for construction; of which 54.40 lakh houses have been completed and the rest are in various stages of construction. Under PMAY (rural), about 2.29 crores of houses have already been sanctioned.

Last month, in a written response to Rajya Sabha, Rural Development Minister Sadhvi Niranjan Jyoti said construction of houses had been delayed due to COVID-19 induced restrictions, delay in releasing the central and state share of the state treasury to the nodal state account. PMAY-G among other reasons.