Prakash – you make good points but you are also implicitly assuming that the following two drivers of mortgage business will stay the same over the next 10-20 years.
1. Housing loans interest rates in India are at 12%-14%, while in US/Germany they are 2%-4%
2. Only 6% of Indians are employed in organized sector, while in US more than 90% are employed in the formal sector
Interest rates are more likely to move down than up and the organized sector will grow beyond 6%, thereby driving mortgage penetration.
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