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HFCs to face headwinds amid rising interest rates, says India Ratings

India Ratings in a report on Tuesday said these factors, along with rising inflation rate, will impact borrowers cash-flows, which will also hit the asset quality marginally

home loans, house, flats, apartments, credit, residential
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Press Trust of India
Housing finance companies (HFCs) are in for some headwinds, given the rising interest rates and property prices and the resultant moderation in home affordability, which will lead to a marginal dip in their loan sales growth to 12.3 per cent next fiscal year, says a report. 

India Ratings in a report on Tuesday said these factors, along with rising inflation rate, will impact borrowers cash-flows, which will also hit the asset quality marginally.

The agency expects a marginal uptick in the stressed accounts, which has been visible since early FY23 due to the rising inflation and interest rates on borrower cash flows. 

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First Published: Feb 28 2023 | 10:33 PM IST

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