The Indian home loan market exhibits robust growth potential, fueled by a burgeoning middle class, increasing urbanization, and government initiatives promoting affordable housing. The market, valued at approximately ₹XX million in 2025 (assuming a logical extrapolation based on the provided CAGR of 22.50% from a past period), is projected to experience significant expansion throughout the forecast period (2025-2033). Key drivers include favorable interest rates (although fluctuations in floating rates pose a risk), government schemes aimed at boosting homeownership, and a rising preference for owning property over renting, particularly among salaried professionals. The market is segmented by customer type (salaried and self-employed), lending source (banks and HFCs), interest rate type (fixed and floating), and loan tenure (categorized into various ranges). While the dominance of established players like HDFC, LIC Housing Finance, and Indiabulls Housing Finance is evident, the market also presents opportunities for smaller players and fintech companies leveraging technology to improve accessibility and efficiency. Constraints include fluctuating interest rates impacting affordability, stringent lending norms, and regional disparities in property prices and infrastructure development. The growth trajectory is expected to be influenced by economic conditions, regulatory changes, and the availability of credit. The segment analysis reveals a significant portion of the market is driven by salaried individuals seeking fixed-rate home loans with tenures between 11-24 years. However, the self-employed segment and floating-rate loans are also demonstrating significant growth, reflecting the diverse needs of the Indian homebuyer. The competitive landscape is dynamic, with both large established players and newer entrants vying for market share. The future will likely see increased competition, a focus on digitalization and customer experience, and the emergence of innovative financial products tailored to specific segments within the Indian home loan market. Recent developments include: June 2023: In a major development, HDFC (Housing Development Finance Corporation) and HDFC Bank came into a merger on July 1, paving the way for the country's largest corporate merger. Following this, HDFC shares were delisted on July 13 and amalgamated into HDFC Bank., May 2023: LIC Housing Finance (LIC HF) is expected to expand its branches in new geographies, increase focus on high-yielding loan against property (LAP), and intensify recovery efforts as it consolidates its position as the largest housing finance company after the merger of larger rival Housing Development Finance Corp with its banking arm.. Key drivers for this market are: Growing Urbanization, Low-Interest Rates. Potential restraints include: Growing Urbanization, Low-Interest Rates. Notable trends are: Lower Interest Rates is Expected to Drive the Market.

In financial year 2019, market share of loans deployed by banks made up for 57 percent of the home loan market in India. Whereas, the market share of the non-bank lender, Housing Finance Companies in home loans sector were about 43 percent of the total market in the country.

The India Home Mortgage Finance Market Report is Segmented by Source (Housing Finance Companies (HFCs) and Banks), by Interest Rate (Fixed Rate and Floating Rate), and by Tenure (Up To 5 Years, 6 - 10 Years, 11 - 24 Years, and 25 - 30 Years). The Report Offers Market Size and Forecasts for India Home Mortgage Finance Market in Value (USD Million) for all the Above Segments.

In financial year 2023, banks in India advanced over 2.5 trillion Indian rupees in housing loans crossing pre-COVID levels. This reflected renewed homebuyer sentiment, as an increasing number of Indians were investing in buying residential property.

Growth of home loans market

Forty years ago, home loans were an alien concept. People would direct their provident fund savings and retirement benefits toward buying a home. However, three key institutions: HDFC, ICICI Ltd, and the State bank of India with their new lending concepts led to significant changes in the home loan market. Currently different commercial banks, NBFCs, and housing finance companies have flooded the mortgage market, and giving prospective home buyers from diverse strata of society with bargaining power and a chance at affording a home.

Inflation and home loans 

India is not untouched by global inflation. To address the problem, the Reserve Bank of India hiked the repo rate four times since April 2022 to 5.9 percent. Consequently, leading banks and housing finance companies raised their lending rates. For a prospective homebuyer, this meant a rise in tenure for home loans. In other words, equivalent monthly payments (EMIs)for homebuyers have lengthened and become more expensive. In financial year 2022, banks in India advanced around two trillion Indian rupees in housing loans almost reaching pre-COVID levels.

In 2023, housing loans accounted for 12.3 percent of India's GDP and are projected to increase to 13 percent by 2025. Over the past six years, the home loan portfolio has experienced significant growth due to increased disbursements fueled by the rising demand from tier-2 and tier-3 cities, increased nuclear families, and growing disposable income.

The Asia-Pacific Mortgage/Loans Broker Market is Segmented by the Enterprise (large, Small, and Medium-Sized), Application (home Loans, Commercial and Industrial Loans, Vehicle Loans, Loans To Governments, and Others), End-User (businesses and Individuals), and Country (Australia, Bangladesh, China, India, Indonesia, Japan, Pakistan, Philippines, Thailand, and Vietnam). The Market Sizes and Forecasts Regarding Value (USD) for all the Above Segments are Provided.

As of March 2024, Housing and Urban Development Corporation Ltd. (HUDCO) was the leading housing finance company in India with a market capitalization (at BSE) of 354 bllion Indian rupees. LIC Housing Finance and IDFC followed with a market capitalization of around 313 billion and 173 billion Indian rupees respectively.

In the financial year 2023, public sector banks in India disbursed individual housing loans amounting to 3.22 trillion Indian rupees. Following closely housing finance companies disbursed housing loans worth 3.11 trillion Indian rupees. This was a growth of 19 percent in comparison to the last financial year.

Loan Advances: Housing Loans: Number of Accounts: Andhra Pradesh data was reported at 340,365.000 Unit in 2024. This records an increase from the previous number of 329,067.000 Unit for 2023. Loan Advances: Housing Loans: Number of Accounts: Andhra Pradesh data is updated yearly, averaging 278,564.000 Unit from Mar 1998 (Median) to 2024, with 27 observations. The data reached an all-time high of 536,989.000 Unit in 2012 and a record low of 17,044.000 Unit in 1998. Loan Advances: Housing Loans: Number of Accounts: Andhra Pradesh data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under Global Database’s India – Table IN.KAH034: Scheduled Commercial Banks: Loan Advances to Priority Sector: Housing Loans.

In 2022, non-banking financial companies in India dominated the retail loans market in terms of the number of loans, with 53 percent market share. Private sector banks followed with around 21 percent. Retail loans are loans given to individual consumers for various reasons such as purchase of property, vehicles, consumer durables, funding education etc.

Loan Advances: Housing Loans: Balance Outstanding: Telangana data was reported at 283,557.507 INR mn in 2024. This records an increase from the previous number of 265,369.714 INR mn for 2023. Loan Advances: Housing Loans: Balance Outstanding: Telangana data is updated yearly, averaging 258,754.739 INR mn from Mar 2016 (Median) to 2024, with 9 observations. The data reached an all-time high of 283,557.507 INR mn in 2024 and a record low of 167,374.000 INR mn in 2016. Loan Advances: Housing Loans: Balance Outstanding: Telangana data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAH034: Scheduled Commercial Banks: Loan Advances to Priority Sector: Housing Loans.

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Personal Loans Market Size 2025-2029

The personal loans market size is forecast to increase by USD 803.4 billion, at a CAGR of 15.2% between 2024 and 2029.

The market is witnessing significant growth, driven by the adoption of advanced technologies in loan processing and the rise in the use of cloud-based personal loan servicing software offerings. These technological advancements enable faster loan processing, improved customer experience, and enhanced security. However, the market faces challenges related to regulatory compliance, with increasing regulations and scrutiny from regulatory bodies. Lenders must ensure they adhere to these regulations to maintain trust and transparency with their customers. Digitalization, including cloud computing, chatbots, big data analytics, and artificial intelligence, has transformed the market. Additionally, the market is witnessing an increase in competition, with new players entering the market and existing players offering innovative products to attract customers. Overall, the market is expected to continue its growth trajectory, driven by technological advancements and the need for flexible financing solutions.

What will be the Size of the Personal Loans Market During the Forecast Period?

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The market encompasses short-term financing solutions designed for individuals to meet their various financial needs. Employment status and credit history significantly influence borrowing limits and interest rates in this sector. Traditional balance sheet lending institutions, such as credit unions, have long dominated the market, but online loan providers have gained traction due to quick lending processes and digitalized business operations. Interest rates and borrowing limits continue to be key market drivers, with competitive insights from credit unions and online providers shaping the landscape. Employment instability and economic uncertainty have increased demand for personal loans, particularly among those with less-than-ideal credit histories.
Digitalization, including cloud computing, chatbots, big data analytics, and artificial intelligence, have transformed the market. These technologies streamline loan assessments, enabling faster approval processes and more personalized customer experiences. However, the rise of digital credit platforms also presents challenges, such as increased competition, potential bad debts, and penalties for late payments. Collateral is less common in personal loans compared to other types of loans, but awareness of digitalization and automation continues to grow. Credit cards serve as a competitive alternative for some consumers, but personal loans offer more flexibility and potentially lower interest rates for larger borrowing needs.

How is this Personal Loans Industry segmented and which is the largest segment?

The personal loans industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Short term loans
  Medium term loans
  Long term loans


Type

  P2P marketplace lending
  Balance sheet lending


Channel

  Banks
  Credit union
  Online lenders


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Application Insights

The short term loans segment is estimated to witness significant growth during the forecast period.

Personal loans have gained popularity as a flexible financing solution for individuals, particularly In the form of short-term loans. These loans cater to urgent needs, such as medical emergencies or car repairs, offering quick access to funds with shorter repayment periods, typically within a year. Unlike home or gold loans, personal loans do not require collateral, making them an accessible option for borrowers. Employment status, credit history, and borrowing limits are key factors in determining eligibility and loan amounts. The market is undergoing digital transformation, with cloud computing, chatbots, big data analytics, and artificial intelligence streamlining business operations. Fintech companies and online loan providers are disrupting traditional financial institutions, such as banks and credit unions, by offering instantaneous loan approvals and digital credit platforms.

However, challenges persist, including regulatory compliance, competition, and managing bad debts and penalties. In the competitive environment, Zopa, Startups, and other fintech companies are leveraging automation, AI technology, and credit history assessments to provide personalized loan solutions. Economic uncertainty and the increasing use of the Internet of Things have heightened aware

As of March 2025, ICICI Bank provided the lowest interest rates for its home loans in India, with an average of 8.75 percent. Bank of Maharashtra accounted for the highest interest rate with an average of 9.75 percent.

In 2022, housing loans ranging from 2.5 to 5 million accounted for approximately 31 percent of total housing loans in India. In contrast, loans below 0.75 million constituted only 5 percent of the total. Overall, housing loans accounted for 11.7 percent of India's GDP in 2022.

Key information about India Total Loans

• India Total Loans was reported at 2,048.209 USD bn in Dec 2024
• This records an increase from the previous number of 2,037.410 USD bn for Sep 2024
• India Total Loans data is updated quarterly, averaging 898.708 USD bn from Dec 1998 to Dec 2024, with 105 observations
• The data reached an all-time high of 2,048.209 USD bn in Dec 2024 and a record low of 82.701 USD bn in Dec 1998
• India Total Loans data remains active status in CEIC and is reported by CEIC Data
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Total Loans: USD: Quarterly

CEIC converts quarterly Total Loans into USD. The Reserve Bank of India provides Total Loans in local currency. The Federal Reserve Board period end market exchange rate is used for currency conversions. Total Loans cover lenders as Scheduled Commercial Banks.

The global digital lending platform market size is estimated to be valued at US$ 14.4 billion in 2024. Over the projection period, global demand for digital lending platforms is predicted to increase at a CAGR of 17.6%, owing to growing popularity of online financial services. By 2034, total industry revenue is set to reach a staggering US$ 80.1 billion.

Attributes	Details
Base Value (2023)	US$ 12.2 billion
Industry Size in 2024	US$ 14.4 billion
Industry Revenue in 2034	US$ 80.1 billion
Value CAGR (2024 to 2034)	17.6%

Country-wise Insights

Countries	Value CAGR
United States	8.2%
China	9.6%
Brazil	4.3%
India	6.1%

Category-wise Insights

By Lending Platform Infrastructure	Value CAGR
Integration Layer	4.4%
User Experience (UX)	5.9%
Risk Assessment and Underwriting	9.6%
Loan Origination and Servicing	10.5%
Payment Integration	8.2%
Security and Compliance	6.1%
Analytics and Reporting	4.8%

By Lending Models	Value CAGR
Point-of-Sale (PoS) Financing	8.2%
Buy Now Pay Later (BNPL)	11.4%
Embedded Credit Cards	7.3%
Real Estate or Mortgage Lending	5.1%
Gig Economy and Freelancer Platforms	3.9%
Digital Wallets and Payment Apps	9.9%
Others	4.7%

End-user	Value CAGR
Individual/Consumers	8.2%
Business/Corporates	10.8%

Key information about India Domestic Credit Growth

• India Domestic Credit increased 11.1 % YoY in Dec 2024, compared with an increase of 11.5 % YoY in the previous month
• India Domestic Credit Growth YoY data is updated monthly
• It averaged 13.6 %, available from Mar 2000 to Dec 2024
• The data reached an all-time high of 27.1 % in Jul 2009 and a record low of 5.4 % in May 2021

CEIC calculates Domestic Credit Growth from monthly Domestic Credit. The Reserve Bank of India provides Domestic Credit in local currency.


Further information about India Domestic Credit Growth

• In the latest reports, India Domestic Credit reached 3,168.1 USD bn in Dec 2024
• Money Supply M2 in India increased to 765.5 USD bn YoY in Nov 2024
• India Foreign Exchange Reserves was measured at 547.5 USD bn in Dec 2024
• The Foreign Exchange Reserves equaled 9.2 Months of Import in May 2023
• The country's Non Performing Loans Ratio stood at 2.8 % in Mar 2024, compared with the ratio of 3.9 % in the previous year
• Household Debt of India reached 17.4 % in Mar 2024, accounting for 17.4 % of the country's Nominal GDP

In the year 2022, lending interest rate in India stood at 8.6 percent. This was a slight reduction from last year's rate of 8.6 percent. Lending rate refers to the bank rate that generally caters to the short- and medium- term financing needs of the private sector.

The Buy Now, Pay Later (BNPL) industry in India is experiencing explosive growth, fueled by increasing smartphone penetration, rising digital literacy, and a burgeoning e-commerce sector. The market's compound annual growth rate (CAGR) exceeding 10% indicates a significant expansion trajectory, driven by factors such as consumer preference for flexible payment options, the ease of integration with e-commerce platforms, and aggressive marketing strategies employed by numerous players. While the exact market size for 2025 is unavailable, considering the high CAGR and the substantial presence of established players like Paytm Postpaid, PhonePe, and Flipkart Pay Later, alongside emerging competitors, a conservative estimate places the Indian BNPL market size at approximately $5 billion in 2025. This figure is projected to continue its upward trend, driven by increasing adoption across diverse sectors, including consumer electronics, fashion & garments, and healthcare. The segment analysis reveals a dynamic landscape. Online channels dominate the BNPL market, reflecting the strong preference for digital transactions. Large enterprises currently hold a larger market share compared to SMEs, primarily due to their greater resources for marketing and technology integration. However, the SME segment is expected to witness significant growth, driven by the increasing affordability and accessibility of BNPL solutions. While regulatory scrutiny and potential risks associated with consumer debt represent restraints, the overall positive outlook for the Indian economy and the expanding digital financial inclusion drive continued expansion. The competitive landscape is highly fragmented, with established players and numerous startups vying for market share. This competition fosters innovation and benefits consumers through more competitive offerings and improved services. Considering these factors, the Indian BNPL market shows strong potential for continued expansion in the coming years. Recent developments include: May 2023: ZestMoney plans to be profitable in 6 months. The fintech firm is said to be finalizing a new investment round from its existing shareholders, including Quona Capital, Zip, Omidyar Network India, Flourish VC, and Scarlet Digital. To ensure business continuity, ZestMoney plans to operate as a lending service provider (LSP), partnering with banks and NBFCs to write out loans rather than lending directly from its balance sheet., February 2023: India lifts ban on PayU's LazyPay and some other lending apps. India's IT Ministry has lifted the ban on seven high-profile lending apps, including PayU's LazyPay, Kissht, KreditBee, and Indiabulls' Home Loans, according to a person familiar with the matter, providing some relief to the fintech industry that has been reeling with immense scrutiny in recent quarters.. Key drivers for this market are: Increasing e-commerce adoption, Rising middle class and disposable income; Access to credit and financial inclusion. Potential restraints include: Increasing e-commerce adoption, Rising middle class and disposable income; Access to credit and financial inclusion. Notable trends are: Surging E-commerce and Digital P2M Payments Boosting the Market.

Key information about India Non Performing Loans Ratio

• India Non Performing Loans Ratio stood at 2.8 % in Mar 2024, compared with the ratio of 3.9 % in the previous year
• India Non Performing Loans Ratio data is updated yearly, available from Mar 1998 to Mar 2024
• The data reached an all-time high of 14.7 % in Mar 1999 and a record low of 2.3 % in Mar 2011

Reserve Bank of India provides annual Non Performing Loans Ratio. Non Performing Loans are defined as loans overdue for more than 90 days.


Further information about India Non Performing Loans Ratio

• In the latest reports, Money Supply M2 in India increased 8.6 % YoY in Sep 2024
• India Foreign Exchange Reserves was measured at 589.8 USD bn in Oct 2024
• The Foreign Exchange Reserves equaled 9.2 Months of Import in May 2023
• The country's Domestic Credit reached 3,162.1 USD bn in Oct 2024, representing an increased of 10.9 % YoY
• Household Debt of India reached 617.3 USD bn in Mar 2024, accounting for 17.4 % of the country's Nominal GDP