India remains underpenetrated in terms of financial services, said HDFC’s Keki Mistry on Thursday, while adding that the next one-two decades will see strong growth due to low penetration.
“Whether it is mortgages, whether it is credit cards, whether it is car loans, whether it is any financial service product. In my view, for the next one-two decades, you will see a strong growth because of the low penetration level,” Mistry said.
Housing has become more affordable, said the vice-chairman and CEO of HDFC.
“Housing has become very affordable over years. In 2020, a house is more affordable than what it was in 2004. We have seen that in the last three-four years, property prices in India have not gone up. If anything at the higher end, they have come down,” Mistry said.
“Income levels have gone up and therefore a cost of a house is a multiple of annual income of a customer. It gets declined making it more and more affordable,” he said.
According to him, interest rates have come to an all-time low.
“The inherent demand for housing in India will always remain strong. The mortgage to GDP ratio in India is 10 percent. We have a young population. There is a large number of people today who have not thought of buying a house but will necessarily have to look at buying a house,” he said.
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