Contractorbhai Team : Can you share how are things goign with Home Improvement Loans, Outlook relating Home Improvement Loan in next 5 years ?
Loan Expert : presently Tier-1 cities have good numbers of home owners who are availing for Home Improvement Loan. Reason being they are aware of this option available to them., where they can save some money and at the same time take a loan. Going forward to Tier -2 and Tier-3 cities, there are expectations for number of demand to upsurge. As and when the awareness is broadcasted, Tier-2 and Tier-3 will also avail for Home Improvement Loans.
Loan Expert : There’s a notion even today that home owner shall opt for Personal Loan only when there’s emergency. There’s this mental block still existing. People say Loan more as obligation rather than as a Financial Instrument.
Initially, people were quite prejudiced for why to take a loan. Why LOAN? Also, People’s salary would grow by small amount. Today the scenario has changed. But that legacy has sunk into us. People will go to different places to ask for the same, fill various forms, etc. To sum it up, people fail to see it as a Financial Instrument. People fail to understand that, he will not be at same income level or my earnings will not deteriorate if he avails for loan.
Business & Economic Experts have pointed out that a big macro point that India is going to see. That is the per capita income trigger point. Borrowing market industry is going grow. So it is something that happens at per capita income that crosses certain point. India is very close to that figure. In Next 4-5 years India will cross figure.