 "The limit of loans under the Pradhan Mantri Mudra Yojana (PMMY) was doubled to Rs 20 lakh recently, inserting a new category—Tarun Plus. Launched 10 years ago, the scheme intended to provide microfinance to small entrepreneurs. However, the number of")
Retail mortgage-backed loans offered by non-banking financial companies (NBFCs) and housing finance companies (HFCs) are expected to reach ₹20 trillion by FY28, from ₹13 trillion as of FY25, according to a report by rating agency ICRA.
Of the ₹20 trillion, the share of affordable housing finance companies (AHFCs) is projected to rise to ₹2.5 trillion from the current ₹1.4 trillion. The rating agency forecasts retail mortgage loans by NBFCs and AHFCs to expand at a compound annual growth rate (CAGR) of 17–19 per cent and 20–22 per cent, respectively, by FY28.
A M Karthik, senior vice-president, ICRA Ltd, said: “Over the next three years, retail mortgage loan growth will be driven by robust demand and the restricted availability of alternative credit options due to ongoing issues with unsecured lending. This sector has traditionally demonstrated strong performance, marked by low loan losses and healthy business returns.”
Housing finance companies accounted for about two-thirds of these overall mortgage loans, and within this, AHFCs constituted 11 per cent of the overall assets under management (AUM) as of March 2025.
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