Commodities Buzz: Big surge in self-employed taking home loans

For housing finance companies (HFCs), loans to self-employed borrowers have increased to ~30% of their overall home loan portfolio compared with ~20% four years ago, primarily driven by government impetus to affordable housing. But the flipside is, delinquencies are also rising. Gross non-performing assets (NPAs) in the segment are estimated to have inched up by 40 basis points to ~1.1% by the end of fiscal 2018, compared with ~0.7% a few years back. To be sure, this is not a broad-based affliction – most lenders are not seeing a significant increase in asset quality pressure.