Mortgage loans sanctioned by finance companies, including home finance companies, grew 76 percent to Rs 79,043 crore in the quarter ending March 2021 from Rs 44,907 crore in Q4 2020. Loans Real estate companies also showed an expansion of 21.9 percent to Rs 23,418 CR from Rs 19,207 CR in the fourth quarter of 2020.

A series of measures taken by state governments, including reducing stamp duty, boosted demand for home loans. Auto loans showed a 28.3 percent drop in penalties to Rs 8,646 crore in Q4FY21, from Rs 12,058 crore in Q4FY20. Personal loans were reduced by 27 percent to Rs 15,401 crore, from Rs 21,095 crore in the fourth quarter of 2020.

There was a significant drop in sanctions to the MSMEs segment in the fourth quarter (represented by long-term loans, unsecured business loans, and real estate loans) compared to fiscal years 19 and 20.

The industry has yet to catch up with the levels reached in Q4FY19, especially in the case of vehicles, loans for CE and MSMEs.

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