Outstanding home loans touch Rs 37L-cr

New Delhi: Housing finance has expanded at a steady pace with outstanding individual home loans rising nearly four times to Rs 37 lakh crore at the end of March 2025, according to the Economic Survey 2025-26. The share of home-loans-to-GDP has grown to 11 per cent in 2024-25 from 8 per cent in 2015, it high-lighted. Housing sales have risen after the COVID pandemic, fuelling demand for home loans.

“The ‘real estate and ownership of dwellings’ sector has contributed about 7 per cent to annual GVA, on average, over the past decade, highlighting its im-portance in services-led growth and strong linkages with construction and fi-nancial services,” the report mentioned. Over the last decade, the Survey highlighted that the government’s policy reforms, including the implementation of the Real Estate (Regulation and Development) Act (RERA), GST, and the Housing for All mission, have supported greater formalisation of the real es-tate sector. Apart from that, the measures to boost housing demand, such as interest sub-vention under PMAY (Urban), the Affordable Housing Fund, lower interest rates, and streamlined credit processes, have strengthened access to housing finance. Urban initiatives, such as the Smart Cities Mission and the Urban In-frastructure Development Fund (UIDF), have enhanced housing demand in Tier 2 and Tier 3 cities. On the back of these reforms, the real estate sector entered a sustained upcycle from September 2021, post-COVID.