New Delhi, July 2 -- Assets under management (AUM) of affordable housing finance companies (A-HFCs) are expected to grow 19-20 percent in the current and next fiscal, broadly matching last year's growth, supported by strong demand for affordable housing and MSME financing, according to a Crisil Ratings report.

Home Loans to Drive Portfolio Expansion

The report projects home loans, which account for around 68 percent of A-HFCs' portfolios, to grow 17-18 percent during FY27 and FY28. Loans against property (LAP), the second-largest segment, are expected to expand at a faster pace of around 23 percent despite tighter underwriting for certain borrower categories.

Crisil said favourable macroeconomic factors, including rising urbanisation, ...