Home loan trend in India: Indian homebuyers are now borrowing home loans worth over Rs 1 crore, as their aspiration to buy premium property grows.
According to data from fintech platform Urban Money, high-ticket loans now make up 21 per cent of all home loan disbursals in major cities, a signal that buyers are increasingly willing to stretch budgets for premium living.
According to the report, Mumbai, Bengaluru, Hyderabad, and Gurugram were among the top urban centres where home loans increased 10 per cent year-over-year (y-o-y) in FY25, while disbursements increased 15 per cent. Cities like Mumbai and Gurugram recorded average loan sizes of Rs 99 lakh and Rs 88 lakh, respectively, across cities.
Amit Prakash Singh, chief business officer (CBO) at Urban Money and co-founder of Square Yards, said: “Home loans above Rs 1 crore now make up 21 per cent of disbursals, reflecting rising demand for premium housing. And with one in every five home loans going to a woman borrower, we’re clearly witnessing a shift towards more empowered and inclusive homeownership.”
Loans Under Rs 45 Lakh See Most Demand
However, despite the growing focus on premium housing, loans under Rs 45 lakh still accounted for nearly half (47 per cent) of disbursals. The middle tier, falling between Rs 45 lakh and Rs 1 crore, made up 32 per cent, indicating a broad-based demand across various segments.
The rising loan sizes were partly fuelled by increasing property prices, which have increased 55–60 per cent since FY2019. During this period, residential property registrations across key cities also rose by 77 per cent.
“India’s housing finance sector is maturing into a more inclusive, tech-driven space. Stable credit conditions, better infrastructure, and rising aspirations are converging to create strong momentum,” said Singh
Female Borrowers See Fastest Growth In Loan Value
Female borrowers saw the fastest growth in loan values, 13 per cent higher year-on-year (y-o-y), compared to a 3 per cent increase among male borrowers. Women now borrow an average of Rs 70 lakh, suggesting stronger participation in financial decisions related to property ownership.
The report further said that while India’s home loan market is growing rapidly, its penetration still sits at just 12 per cent of GDP, far below the levels in developed economies, which suggests significant room for future growth.
