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January 09, 2025
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Key Highlights – Urban Money Home Loan Report FY 2025 |
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India’s home loan market is experiencing a steady upswing, driven by rising residential demand and a growing appetite for premium properties. According to Urban Money’s newly released report, ‘Housing Finance – The Quiet Catalyst Driving India’s Property Market’, the total volume of home loan disbursals rose by 10%. In comparison, the value of disbursals jumped by 15% across the top Indian cities. Notably, home loans exceeding ₹1 crore now account for 21% of total disbursals, underscoring rising confidence among high-income homebuyers.
Sharp Growth Across Major Cities
Urban Money has noticed a steady rise in the number of people opting for larger home loans in cities such as Mumbai, Bengaluru, Gurugram, Noida, Greater Noida, Hyderabad, Pune, Thane, and Navi Mumbai. With property prices climbing and financing options staying accessible, many homebuyers are now willing to borrow more to match their aspirations.
On the ground, registration numbers tell a similar story. Data from the Inspector General of Registration (IGR) shows that residential transactions increased from ₹3.07 lakh in FY 2019 to ₹5.44 lakh in FY 2025, representing a 77% rise over the six-year period.
Urban Money’s data further reveals that property-linked loans (home loans and loans against property) made up 63% of total disbursals in FY25.
City-wise, the average home loan value across major Indian cities stood at ₹74 lakh, with city-level figures as follows:
| City | Average Home Loan (₹ Lakh) | YoY Growth |
| Mumbai | 99 | 4% |
| Gurugram | 88 | 7% |
| Bengaluru | 74 | 9% |
| Navi Mumbai | 76 | 12% |
| Thane | 68 | 14% |
| Pune | 59 | 8% |
| Noida & Greater Noida | 71 | 4% |
| Hyderabad | 69 | 4% |
Changing Borrower Demographics
FY25 also brought a noticeable rise in home loan activity among women. They now represent one out of every five borrowers, a clear sign of growing financial independence and ownership intent. Interestingly, the average home loan size for women reached ₹70 lakh, a 13% increase from the previous year. In comparison, male borrowers averaged ₹76 lakh, with a modest 3% year-on-year rise.
What stands out even more is the pace of value growth: the total disbursal amount to women increased by 23% over the year, outstripping the 14% growth recorded among male borrowers.
=> Explore more about Home Loan for Women
Loan Size Preferences Shifting
Urban Money’s platform insights show a clear shift in buyer preferences:
- Loans above ₹1 crore: 21% of all disbursals
- Loans between ₹45 lakh – ₹1 crore: 32%
- Loans below ₹45 lakh: 47%
This transition signals a growing demand for premium homes, particularly in metropolitan areas and high-growth micro-markets.
Urban Money’s Role in the Lending Ecosystem
As a FinTech venture by Square Yards, Urban Money has rapidly emerged as the largest organised distributor of secured mortgages in India. With over ₹61,000 crore in total disbursements, a network of over 50,000 agents, and partnerships with 150+ banks and NBFCs, Urban Money bridges the gap between borrowers and institutions with speed and scale.
Its platform enables a seamless borrowing journey—from product discovery and rate comparisons to documentation, tax and insurance advisory, and disbursal—across 100+ Indian cities.
Fintech Driving the Shift
This double-digit growth in the home loan segment is part of a broader trend driven by:
- Urbanisation and higher income aspirations
- Increased digital literacy and fintech adoption
- A rise in women-led property ownership
“As home prices rise and financing becomes smarter, borrowers are clearly making more informed choices. We see this as a positive sign of financial maturity and growing trust in digital channels,” said Amit Prakash Singh, Chief Business Officer, Urban Money and Co-Founder, Square Yards.
Explore how housing finance is quietly transforming India’s real estate market.
Read the full story here: https://bit.ly/4jERfr9
Business Standard – https://bit.ly/4jzQuzy
Deccan Herald – https://bit.ly/4dIMxag
Republic – https://bit.ly/4jtUYYh
Realty+ – https://bit.ly/4kUinU1
Myreality – https://bit.ly/3T6jDaB
Konexio Network – https://bit.ly/3T7sfxG
