Average Home Loan Value Reaches ₹74 Lakh In Top Cities With 5% Growth In FY25

Home loan activity in India saw a big jump in FY25. A new report by Urban Money shows that both the number and value of home loans grew by double digits. People across major cities are now taking bigger loans, especially for premium homes. This growth also reflects rising property prices and changing buyer preferences.

Home Loan Volumes And Values See Double Digit Growth

Home loan disbursals in India recorded a 10% increase in volume and a 15% rise in value during FY25, according to fintech platform Urban Money, part of Square Yards. The steady growth reflects increased demand for housing, especially in urban areas.

High-Value Loans Show Demand For Premium Homes

Loans above ₹1 crore (US$ 116,822) made up 21% of total disbursals in FY25. This points to rising interest in premium housing as buyers focus more on larger and high-value properties.

Property-Linked Loans Make Up the Majority Share

Home loans and loans against property formed 63% of total loan disbursals. This shows that property remains a preferred form of secured borrowing among Indian consumers.

Property Registrations Up 77% Since FY19

Residential property registrations have increased from 3.07 lakh units in FY19 to 5.44 lakh units in FY25, a rise of 77%. This trend reflects the growing activity and interest in the housing sector.

Average Loan Value Reaches ₹74 Lakh In Major Cities

In cities like Mumbai, Pune, Bengaluru, Hyderabad, Gurugram, Noida, Greater Noida, Thane, and Navi Mumbai, the average home loan value touched ₹74 lakh (US$ 86,415), a 5% increase from last year.

Loans Below ₹45 Lakh Still Lead In Volume

Loans under ₹45 lakh ($ 52,549) accounted for 47% of all disbursals. Another 32% of loans fell in the ₹45 lakh to ₹1 crore range, showing that mid-range housing also remains in strong demand.

Read More: Explained: Why Your Home Loan Interest Rates May Not Have Dropped Despite RBI’s Rate Cuts! 

Women Borrowers Show Growing Presence

One in five home loans was taken by women in FY25. Loan volume grew 10% for men and 9% for women, while loan value grew 14% and 23% respectively, highlighting a shift in borrower demographics.

Property Prices Rise By 55% To 60% Since FY19

Rising home values are supported by a steady increase in property prices, which have grown about 55% to 60% since FY19. This has added to the trend of higher loan amounts and greater urban housing demand.

Conclusion

The rise in home loan disbursals, especially for higher-value properties, shows how the housing market is evolving in India. With more women becoming homeowners and property prices continuing to grow, demand for real estate remains strong. These trends highlight changing aspirations and growing confidence among Indian homebuyers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.