Home loan volume and value see double-digit growth in FY25: Report

The volume and value of home loan disbursals in top cities increased by 10 per cent and 15 per cent, respectively, in FY25, according to a report by Urban Money, a fintech platform by Square Yards.

 

Further, loans with ticket sizes above ₹1 crore accounted for 21 per cent of total home loan disbursals during the year.

 

The growth comes amid a 77 per cent increase in residential property registrations recorded by the Inspector General of Registration (IGR) between FY19 and FY25. Registrations rose from 3.07 lakh units in FY19 to 5.44 lakh units in FY25.

 

The top cities include Bengaluru, Gurugram, Noida and Greater Noida, Hyderabad, Mumbai, Thane, Navi Mumbai and Pune. 

 

Amit Prakash Singh, chief business officer, Urban Money and co-founder, Square Yards, said, ‘Home loans above ₹1 crore now make up 21 per cent of disbursals, reflecting rising demand for premium housing. With one in every five home loans going to a woman borrower, we’re clearly witnessing a shift towards more empowered and inclusive homeownership. All these shifts highlight rising urban aspirations, stable credit conditions and evolving homeownership trends across the country.’

 

According to the report, property-linked loans, comprising home loans and loans against property, accounted for the largest share—63 per cent—of total loan disbursals in FY25.

 

During the same period, the number of home loans disbursed to male borrowers increased by 10 per cent, while disbursals to women borrowers grew by 9 per cent.

 

The growth in the value of home loans reflects a shift towards premium homes as well as a notable increase in property prices, which have risen by approximately 55–60 per cent on average since FY19, the report noted. Year-on-year growth in disbursal value stood at 14 per cent for men and 23 per cent for women. 

 

Home loans below ₹45 lakh accounted for 47 per cent of disbursals, while those between ₹45 lakh and ₹1 crore made up 32 per cent.

 

The average home loan value in the top cities reached ₹74 lakh in FY25, up 5 per cent year-on-year. For male borrowers, the average stood at ₹76 lakh (up 3 per cent year-on-year), while for women it was ₹70 lakh, up 13 per cent year-on-year.

 

Additionally, Mumbai and Gurugram recorded the highest average home loan values, at ₹99 lakh and ₹88 lakh, respectively, in FY25.