Banks have reduced their pace of providing home loans. The latest figures by RBI reveal that from October 2005 to October 2006, banks granted Rs 51,191 crore as home loans as compared to Rs 60, 495 crore from June 2005 to June 2006.

HFCs or Housing finance companies have also reported a decline in disbursal.In the fiscal 2005-06, HFCs disbursed a total sum of around Rs 27,412 crore as housing finance. On the other hand, the amount was approx Rs 26,043 crore in the fiscal 2004-05. According to the latest annual report of National Housing Bank ( NHB ), in 2005-06, the total disbursement by SCBs ( scheduled commercial banks ) was nearly Rs 58,623 crore as compared to Rs 50,398 crore in 2004-05.

This indicates that the total growth in housing loan during the period 2005-2006 was just 12.55%.Housing finance companies grew at a rate of 5.26% while banks showed a growth rate of 16.32% as compared to last years’ 25-30%.
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