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.

Bank Lending Rate in India remained unchanged at 9.77 percent in May. This dataset provides - India Prime Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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.

The Indian home mortgage finance market is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 7% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, a burgeoning middle class with increasing disposable incomes and aspirations for homeownership is significantly boosting demand. Secondly, supportive government policies aimed at affordable housing initiatives and infrastructure development are creating a favorable environment for market expansion. Government schemes like Pradhan Mantri Awas Yojana (PMAY) have been instrumental in driving demand, especially in the affordable housing segment. Thirdly, the increasing availability of diverse financing options, including both fixed and floating interest rate mortgages across various tenures, caters to a wider range of borrower needs and preferences. Finally, the presence of numerous established players and emerging fintech companies is fostering competition, leading to improved services and customer experience. However, the market isn't without challenges. Interest rate fluctuations pose a significant risk, impacting affordability and potentially dampening demand during periods of high interest rates. Furthermore, regulatory changes and stringent lending norms can affect the ease of accessing home loans. Despite these restraints, the long-term outlook for the Indian home mortgage finance market remains positive, driven by underlying demographic trends and sustained economic growth. The segment breakdown reveals a strong demand across various tenures, with a considerable portion likely concentrated in the 6-10 year and 11-24 year categories, reflecting the preferences of a diverse borrower base. The major players, including HDFC, LIC Housing Finance, and others, are well-positioned to capitalize on this growth, although competition is intensifying. This comprehensive report provides an in-depth analysis of the India home mortgage finance market, covering the period from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, the report offers valuable insights into market trends, growth drivers, challenges, and future prospects. The study encompasses key segments like housing finance companies (HFCs) and banks, analyzing various loan interest rates (fixed and floating), and loan tenures (up to 5 years, 6-10 years, 11-24 years, and 25-30 years). The report's findings are crucial for investors, lenders, developers, and anyone involved in or interested in the booming Indian real estate sector. Recent developments include: November 2022: Tata Capital Housing Finance, a Tata Capital subsidiary, intends to push into the home loan market significantly. To do so, it is looking for the capital of INR 3,000 crore from the National Housing Bank and intends to raise INR 1,000 crore through bonds. Both retail and real estate developers are expected to be eligible for financing from the organization., October 2022: Private sector lender HDFC Bank will complete its planned merger with Housing Development Finance Corp. Ltd by the first quarter of FY24 instead of the original target of the third quarter.. Notable trends are: Availability of Affordable Housing in India is Driving the Market Growth.

Lending interest rate (%) in India was reported at 8.5671 % in 2022, according to the World Bank collection of development indicators, compiled from officially recognized sources. India - Lending interest rate - actual values, historical data, forecasts and projections were sourced from the World Bank on June of 2025.

In financial year 2021, the effective interest rate on home loans was a little over three percent on average. This was a slight increase compared to the previous year, when the interest rate stood at 2.9 percent. This increase happened after years of decreasing interest rates.

The reasons for this decline over the last decade are the general decrease in the nominal interest rate as well as the introduction of governmental subsidy programs such as the Credit Linked Subsidy Scheme (CLSS). In general, home loans in 2020 were more affordable than in 2000.

The Indian home mortgage finance market is experiencing robust growth, fueled by a burgeoning middle class, increasing urbanization, and supportive government policies aimed at affordable housing. With a Compound Annual Growth Rate (CAGR) exceeding 7% from 2019-2033, the market presents significant opportunities for investors and lenders. The market is segmented by source (banks and Housing Finance Companies or HFCs), interest rate type (fixed and floating), and loan tenure (ranging from less than 5 years to over 25 years). While banks hold a substantial market share, HFCs are playing an increasingly important role, particularly in catering to specific segments and underserved populations. The demand for longer-tenure loans is also growing, reflecting evolving consumer preferences and affordability considerations. Key drivers include government initiatives promoting homeownership, reduced interest rates during certain periods, and the ongoing expansion of the organized financial sector. However, challenges remain, including economic fluctuations, credit risk assessment, and potential regulatory changes that may impact lending practices. The competitive landscape involves both large established players like HDFC, LIC Housing Finance, and Indiabulls Housing Finance, as well as smaller, more niche players catering to specific geographic regions or customer demographics. The market's continued expansion is largely contingent upon sustained economic growth and the continued accessibility of credit. The forecast for the Indian home mortgage finance market indicates strong growth through 2033, driven by favorable demographics and sustained infrastructure development. The ongoing development of the digital lending space offers further opportunities for innovation and market penetration, streamlining processes and reaching a wider range of borrowers. Effective risk management strategies will be crucial for lenders navigating the evolving market dynamics. Government policies aimed at improving financial inclusion and affordable housing remain crucial for long-term growth. Analyzing market segments, such as the rising popularity of fixed-rate mortgages against the inherent volatility of floating-rate mortgages, offers valuable insight into changing consumer behavior and lender strategies. The strategic focus on various tenure options (5 years, 6-10 years, 11-24 years, 25-30 years) showcases the diverse needs and financial planning horizons of Indian homebuyers. Overall, the Indian home mortgage market is poised for considerable expansion, provided economic conditions remain stable and government support continues. Recent developments include: November 2022: Tata Capital Housing Finance, a Tata Capital subsidiary, intends to push into the home loan market significantly. To do so, it is looking for the capital of INR 3,000 crore from the National Housing Bank and intends to raise INR 1,000 crore through bonds. Both retail and real estate developers are expected to be eligible for financing from the organization., October 2022: Private sector lender HDFC Bank will complete its planned merger with Housing Development Finance Corp. Ltd by the first quarter of FY24 instead of the original target of the third quarter.. Notable trends are: Availability of Affordable Housing in India is Driving the Market Growth.

The benchmark interest rate in India was last recorded at 5.50 percent. This dataset provides - India Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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.

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 2024, banks in India advanced over *** trillion Indian rupees in housing loans. This was an increase compared to the previous year. 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 **** times since April 2022 to *** 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 *** trillion Indian rupees in housing loans almost reaching pre-COVID levels.

India: Interest rates on bank credit to the private sector: The latest value from 2022 is 8.57 percent, a decline from 8.7 percent in 2021. In comparison, the world average is 11.81 percent, based on data from 93 countries. Historically, the average for India from 1978 to 2022 is 13.15 percent. The minimum value, 8.33 percent, was reached in 2010 while the maximum of 18.92 percent was recorded in 1992.

India Foreign Banks: Demand Loan Rate: High: Commonwealth Bank of Australia data was reported at 9.250 % pa in Sep 2016. This records a decrease from the previous number of 10.400 % pa for Jun 2016. India Foreign Banks: Demand Loan Rate: High: Commonwealth Bank of Australia data is updated quarterly, averaging 10.900 % pa from Sep 2011 (Median) to Sep 2016, with 20 observations. The data reached an all-time high of 12.000 % pa in Sep 2012 and a record low of 9.250 % pa in Sep 2016. India Foreign Banks: Demand Loan Rate: High: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB037: Lending Rate: Other than Export Credit: Demand Loan Rate: High.

The dataset shows structure of interest rates

Note: 1. For the year 1995-96, interest rate on deposits of maturity above 3 years, and from 1996-97 onwards, interest rates on deposit for all the maturities refer to the deposit rates of 5 major public sector banks as at end-March. 2. From 1994-95 onwards, data on minimum general key lending rates prescribed by RBI refers to the prime lending rates of 5 major public sector banks. 3. For 2011-12, data on deposit rates and Base rates of 5 major public sector banks refer to the period up to July 31, 2010. From July 1, 2010 BPLR System is replaced by Base Rate System. Accordingly the data reflects the Base Rate of five major public sector banks. Data for 2010-11 for Call/Notice Money rates are average of April-July 2010. 4. Data for dividend rate and yield rate for units of UTI are based on data received from Unit Trust of India. 5. Data on annual(gross) redemption yield of Government of India securities are based on redemption yield which is computed from 2000-01 as the mean of the daily weighted average yield of the transactions in each traded security. The weight is calculated as the share of the transaction in a given security in the aggregated value. 6. Data on prime lending rates for IDBI, IFCI and ICICI for the year 1999-00 relates to long-term prime lending rates in January 2000. 7. Data on prime lending rates for State Financial Corporation for all the years and for other term lending institutions from 2002-03 onwards relate to long-term (over 36-month) PLR. 8. Data on prime lending rate of IIBI/ IRBI from 2003-04 onwards relate to single PLR effective July 31, 2003. 9. IDBI ceased to be term lending institution on its conversion into a banking entity effective October 11, 2004. 10. ICICI ceased to be a term-lending institution after its merger with ICICI Bank. 11. Figures in brackets indicate lending rate charged to small-scale industries. 12. IFCI has become a non-bank financial company. 13. IIBI is in the process of voluntary winding up. 14. Figures for 2015-16 are as on July 14, 2015. 15. 2024-25 data : As on September 1, 2024; except for WALRs, WADTDR and 1-year median MCLR (July 2023). 16. * : Data on deposit and lending rates relate to five major Public Sector Banks up to 2003-04. While for the subsequent years, they relate to five major banks. 17. # : Savings deposit rate from 2011-12 onwards relates to balance up to 1 lakh. Savings deposit rate was deregulated with effect from October 25, 2011. 18. $ : Data on Weighted Average Lending Rates (WALRs), weighted Average Domestic Term Deposit Rate (WADTDR) and 1-year median marginal cost of funds-based lending rate (MCLR) pertain to all scheduled commercial banks (excluding RRBs and SFBs). 19. Data on lending rates in column (7) relate to Benchmark Prime Lending Rate (BPLR) for the period 2004-05 to 2009-10; Base Rate for 2010-11 to 2015-16 and Marginal Cost of Funds Based Lending Rate (MCLR) (overnight) for 2016-17 onwards. BPLR system was replaced by the Base Rate System from July 1, 2010, which, in turn, was replaced by the MCLR System effective April 1, 2016.

India Home Loan Market By Size, Share, Trends, Growth, Forecast 2026, Segmented By Customer Type, By Loan Type, By Type, By Source, By Bank Type, By Interest Rate, By Tenure, By Area of Property, By Mode of Purchase, By Customer Profile, By Region, Competition Forecast and Opportunities

The table below showcases the 10th, 25th, 50th, 75th, and 90th percentiles of mortgage rates for each zip code in Indian Head, Maryland. It's important to understand that mortgage rates can vary greatly and can change yearly.

India Weighted Average Lending Rates: Quarterly: Fresh Rupee Loans Sanctioned: Public Sector Banks data was reported at 9.380 % in Dec 2018. This records a decrease from the previous number of 9.450 % for Sep 2018. India Weighted Average Lending Rates: Quarterly: Fresh Rupee Loans Sanctioned: Public Sector Banks data is updated quarterly, averaging 10.410 % from Mar 2013 (Median) to Dec 2018, with 24 observations. The data reached an all-time high of 11.820 % in Sep 2013 and a record low of 9.040 % in Mar 2018. India Weighted Average Lending Rates: Quarterly: Fresh Rupee Loans Sanctioned: Public Sector Banks data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB007: Lending Rate: Weighted Average Lending Rates.

With average lending interest rates of less than ***** percent in 2023, Switzerland was the country with the lowest cost of borrowing money among the ones selected here. The average lending interest rate in China was **** percent, and in South Korea it was roughly *** percent. The average interest rate in the United States was **** in 2021, the latest available data, but the prime rate charged by banks in that country has increased since then.

India Weighted Average Lending Rates: Outstanding Ruppe Loans: Public Sector Banks data was reported at 10.060 % in Sep 2018. This records a decrease from the previous number of 10.110 % for Aug 2018. India Weighted Average Lending Rates: Outstanding Ruppe Loans: Public Sector Banks data is updated monthly, averaging 11.495 % from Feb 2012 (Median) to Sep 2018, with 80 observations. The data reached an all-time high of 12.690 % in Apr 2012 and a record low of 10.060 % in Sep 2018. India Weighted Average Lending Rates: Outstanding Ruppe Loans: Public Sector Banks data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB007: Lending Rate: Weighted Average Lending Rates.

In 2023, housing loans accounted for **** percent of India's GDP and are projected to increase to ** 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.