Housing finance companies (HFC) have seen their market share rising in the past five years. With new companies emerging for affordable housing, their share is expected to expand faster.
Rating agency ICRA estimates the share of housing finance companies' in total outstanding home loans has risen from 33 per cent in March 2012 to 37 per cent in March 2017. Commercial banks saw their share of the business decline from 67 per cent in 2012 to 63 per cent in March 2017.
A number of factors have worked in favour of housing finance companies: their focus, nimbler structures and aggression.