Home loans triple in 10 years, rising to ₹37 lakh cr or 11% of India's GDP

Housing finance also expanded steadily, with outstanding individual housing loans more than tripling from about ₹10 lakh crore as at the end of March 2015 to over ₹37 lakh crore at end March 2025

For many Indian households, buying a home has always been the single largest financial decision they make. Data from the Economic Survey 2025–26 shows that outstanding individual housing loans have more than tripled over the past decade, rising from about ₹10 lakh crore at the end of March 2015 to over ₹37 lakh crore by March 2025. As a result, housing loans have increased from 8% of GDP to over 11%, signalling a much deeper financialisation of housing demand.

 

In simple terms, more families are funding home ownership through formal credit—and committing to long-term repayment plans that shape their broader financial goals. The sharp expansion in housing finance reflects more than rising property prices. It points to a shift in how households structure wealth creation.

 

 

Unlike short-term personal loans, housing loans typically span 15–25 years, forcing borrowers to plan income, savings and spending over long horizons. For many families, the EMI becomes the anchor around which other financial goals—retirement, education, insurance and investments—are organised.

 

When housing loans rise from ₹10 lakh crore to ₹37 lakh crore, it means far more households are using bank and housing finance company loans to buy homes than they were a decade ago. 

 

Earlier, many homes were bought using:

 

• Large upfront savings
• Family money
• Informal borrowing

 

Now, home ownership is increasingly tied to structured, long-term EMIs, backed by verifiable income.

 

Home buying has moved from a cash-heavy activity to a credit-led one.

 

2. Housing Has Become a Bigger Part of the Economy

 

When housing loans rise from 8% to over 11% of GDP, it tells us that:

 

Home loans are growing faster than the economy itself

 

Housing is taking up a larger share of national income and credit