Home loan volume and value see double-digit growth in FY25: Report
- IBEF
- June 4, 2025
Home loan disbursals across major Indian cities saw a 10% rise in volume and 15% growth in value in FY25, according to a report by fintech platform Urban Money, part of Square Yards. Loans exceeding Rs. 1 crore (US$ 116,822) comprised 21% of total home loan disbursals, underscoring rising demand for premium housing. Property-linked loans, including home loans and loans against property, formed the largest share, 63% of total loan disbursals. The surge in home loan activity aligns with a 77% increase in residential property registrations since FY19, rising from 3.07 lakh units to 5.44 lakh in FY25.
The report highlighted a growing shift in buyer profiles, with one in five home loans issued to women. Loan disbursals grew 10% for men and 9% for women, while the disbursal value rose 14% and 23%, respectively. The average home loan value in top cities, including Mumbai, Pune, Bengaluru, Hyderabad, Gurugram, Noida, Greater Noida, Thane, and Navi Mumbai, stood at Rs. 74 lakh (US$ 86,415) in FY25, marking a 5% YoY increase. Loans below Rs. 45 lakh (US$ 52,549) accounted for 47% of disbursals, while 32% fell in the Rs. 45 lakh–Rs. 1 crore (US$ 52,549-116,822) range. Notably, average loan values touched Rs. 99 lakh (US$ 115,609) in Mumbai and Rs. 88 lakh (US$ 102,763) in Gurugram. Property prices have climbed approximately 55–60% since FY19, reinforcing the trend towards high-value housing and shifting urban aspirations.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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