Home loans to businessmen pose problem, Crisil raises alert
A senior director Krishnan Sitaraman said government initiatives and the regulator have caused the surge in the growth, and expected this trend to continue as both large and small housing finance companies focus on this segment. "This trend, however, warrants caution because lending to self-employed is largely based on assessed income," they said, commenting on the higher propensity to lend to the self-employed borrowers.
The composition of self-employed borrowers in the overall book has increased to 30 per cent for the housing finance companies now, domestic ratings agency Crisil said today. Image source: Pixabay