| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 479.52 Billion |
| Market Size (2030) | USD 915.22 Billion |
| CAGR (2025 - 2030) | 13.80 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Home Mortgage Finance Market Analysis
The India Home Mortgage Finance Market size is estimated at USD 479.52 billion in 2025, and is expected to reach USD 915.22 billion by 2030, at a CAGR of 13.80% during the forecast period (2025-2030).
The Indian housing mortgage market has grown significantly in recent years, driven by urbanization, government initiatives, rising incomes, and a growing middle class. Housing demand, especially in urban areas, has surged as homeownership becomes a priority, leading to increased housing loan disbursements. However, challenges such as rising property prices in major cities and higher non-performing assets (NPAs) among low-income borrowers persist. Despite these issues, the market outlook remains positive, supported by government efforts, increasing demand, and smart city developments. Government schemes focusing on affordable housing have been instrumental in driving growth, particularly for low and middle-income groups. Urbanization remains a key driver, with India’s urban population projected to grow from 35% currently to 40% by 2030, according to World Bank data. This shift has fueled demand for residential properties in metropolitan and Tier 1 cities like Mumbai, Delhi, Bengaluru, and Hyderabad.
Urban migration has intensified the need for housing infrastructure. Young professionals and nuclear families increasingly prefer buying homes over renting, driving housing loan demand. This trend has led to a rise in home loan applications, with financial institutions offering tailored loan products. The Smart Cities Mission has further boosted urban housing demand, as improved infrastructure and job opportunities increase the need for residential properties, driving loan disbursements. While traditional banks dominate the housing loan market, housing finance companies (HFCs) are playing a growing role. A key challenge remains the continuous rise in property prices, particularly in metropolitan cities. Cities like Mumbai, Delhi, Bengaluru, and Hyderabad have seen property prices soar, making homeownership less affordable for middle and lower-income groups. The gap between rising real estate prices and stagnant incomes has made down payments and loan qualifications increasingly difficult for potential buyers.
India Home Mortgage Finance Market Trends
Rising Urbanization and Housing Demand
India's swift urbanization is a pivotal force propelling the housing loan market. Over recent decades, India's urban populace has seen substantial growth, a trend set to persist. World Bank data indicates that approximately 35% of India's populace resides in urban locales, with projections suggesting this will climb to 40% by 2030. This urban migration, especially pronounced in major cities like Mumbai, Delhi, Bengaluru, and Hyderabad, has spurred a massive demand for residential properties.
As cities swell with new residents, the clamor for housing infrastructure intensifies. Urban dwellers, notably young professionals, and nuclear families are increasingly opting for home purchases over rentals. The rise of nuclear families and their aspirations for homeownership have been pivotal in driving the surge in housing loans. Consequently, this urban demand has led to a notable uptick in home loan applications, prompting financial institutions to introduce a range of loan products tailored for urban buyers.
Moreover, the push for smart cities under the Smart Cities Mission has further fueled urban housing demand. Enhanced infrastructure and burgeoning employment opportunities in these cities have not only spiked the demand for residential properties but also led to a surge in housing loan disbursements.
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Growth of Housing Finance Companies
In India, Housing Finance Companies (HFCs) are playing an increasingly pivotal role in the home mortgage finance market. HFCs have recently solidified their position as key players in real estate financing, offering a diverse array of financial products tailored to the varied needs of homebuyers. While traditional banks continue to dominate the housing loan market, the rise of HFCs has been instrumental in the sector's expansion. Prominent HFCs, such as LIC Housing Finance and Indiabulls Housing Finance, have adeptly focused on underserved market segments, especially targeting low-income and informal sector borrowers.
HFCs distinguish themselves by offering more adaptable loan terms than traditional banks, enabling individuals with non-salaried incomes or less-than-ideal credit histories to secure home loans. Furthermore, many HFCs focus on providing smaller loan amounts for affordable housing projects, a segment often overlooked by banks. Moreover, many Housing Finance Companies (HFCs) are concentrating on offering smaller loan amounts tailored for affordable housing projects, a niche frequently neglected by traditional banks. This targeted approach has not only accelerated the growth of HFCs but also enhanced their prominence in the housing loan sector. At the same time, as financial literacy in India continues to improve, a growing number of individuals are seeking home loans. With an enriched understanding of the advantages of homeownership and the financing avenues available, there's a burgeoning demand for mortgage products. Capitalizing on this trend, HFCs are rolling out educational initiatives and resources aimed at simplifying the mortgage process for prospective borrowers.
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India Home Mortgage Finance Industry Overview
India's home mortgage finance market is fragmented, featuring over 40 notable regional and local players. While banks-led, non-bank lenders are poised for significant growth soon. The report profiles key players, including HDFC Housing Finance, LIC Housing Finance Limited, Indiabulls Housing Finance Limited, L&T Housing Finance Limited, and PNB Housing Finance Limited.
India Home Mortgage Finance Market Leaders
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HDFC Housing Finance
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LIC Housing Finance Limited
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Indiabulls Housing Finance Limited
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L&T Housing Finance Limited
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PNB Housing Finance Limited
- *Disclaimer: Major Players sorted in no particular order
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India Home Mortgage Finance Market News
- May 2024: L&T Finance Ltd (LTF) has introduced 'The Complete Home Loan,' which is facilitated through a digital platform. This offering comes with the support of a dedicated relationship manager and an optional home décor financing feature. The company states that the home décor financing is designed to offer flexibility and convenience, enabling customers to acquire essential furnishings for their living spaces quickly.
- July 2024: After obtaining the necessary regulatory approvals, Indiabulls Housing Finance rebranded itself as Sammaan Capital. The approvals encompassed the Certificate of Incorporation from the Registrar of Companies and the Reserve Bank of India's nod, granting it the status of an NBFC-ICC (Investment and Credit Company).
India Home Mortgage Finance Industry Segmentation
Home mortgage finance secures a loan for purchasing a house by using an asset as collateral. Mortgages can be utilized to buy a new home or to borrow against the equity of an existing one. Banks, mortgage companies, and financial institutions provide these loans, catering to primary residences, secondary homes, or investment properties. The Indian home mortgage finance market is segmented by source, interest rate, tenure, and type. By source, the market is segmented into bank and housing finance companies. By interest rate, the market is segmented into fixed rate and floating rate. By tenure, the market is segmented into up to 5 years, 6 - 10 years, 11 - 24 years, and 25 - 30 years. By type, the market is segmented into home purchase, land/ plot purchase, home construction, home improvement, and home extension. The report offers market size and forecasts for India's Home Mortgage Finance Market in value (USD) for all the above segments.
| By Source | Bank |
| Housing Finance Companies (HFC's) | |
| By Interest Rate | Fixed Rate |
| Floating Rate | |
| By Tenure | Upto 5 Years |
| 6 - 10 Years | |
| 11 - 24 Years | |
| 25 - 30 Years |
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India Home Mortgage Finance Market Research Faqs
How big is the India Home Mortgage Finance Market?
The India Home Mortgage Finance Market size is expected to reach USD 479.52 billion in 2025 and grow at a CAGR of 13.80% to reach USD 915.22 billion by 2030.
What is the current India Home Mortgage Finance Market size?
In 2025, the India Home Mortgage Finance Market size is expected to reach USD 479.52 billion.
Who are the key players in India Home Mortgage Finance Market?
HDFC Housing Finance, LIC Housing Finance Limited, Indiabulls Housing Finance Limited, L&T Housing Finance Limited and PNB Housing Finance Limited are the major companies operating in the India Home Mortgage Finance Market.
What years does this India Home Mortgage Finance Market cover, and what was the market size in 2024?
In 2024, the India Home Mortgage Finance Market size was estimated at USD 413.35 billion. The report covers the India Home Mortgage Finance Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the India Home Mortgage Finance Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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India Home Mortgage Finance Industry Report
India Home Mortgage Finance Market, documented by Mordor Intelligence™ Industry Reports, has seen notable growth, spurred by an increase in housing demand and supportive government measures. This growth is shaping a competitive landscape in the home loan market in India, where banks, NBFCs, and HFCs compete for a significant share. These entities offer a variety of mortgage products tailored to different consumer segments like salaried individuals, self-employed professionals, and NRIs. India housing finance market size expansion is further fueled by favorable demographics such as urbanization and rising disposable incomes, coupled with low-interest rates and technological advances that streamline the lending process. Initiatives aimed at affordable housing are expanding opportunities in both major cities and tier II and III areas, improving accessibility and affordability across various property types. With ongoing digital transformation and a focus on customer-centric solutions, the sector is poised for robust expansion. For a detailed analysis, including market share, size, and revenue growth rates, consult the free report PDF download from the Mordor Intelligence™ Industry Reports.
