Stories
Affordable Homes Anchor India Housing Loans as Smaller Cities Drive Growth
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CNBC TV18•07-10-2026, 15:21
Affordable Homes Anchor India Housing Loans as Smaller Cities Drive Growth
- •Affordable housing accounts for nearly 68% of active housing loans in India as of August 2026, driving credit inclusion in smaller cities and Tier II and Tier III markets.
- •Over one in five affordable housing borrowers are new to credit, highlighting the segment's role in bringing first-time borrowers into the formal financial system.
- •Housing finance companies increased their portfolio share to 31.4% in August 2026, outpacing the broader industry in affordable and mid-market segments.
- •Micro loan against property emerged as a major growth engine with a 20% CAGR over the past five years, reaching ₹4.7 lakh crore in outstanding portfolio.
- •Asset quality in affordable housing improved over the past year, though smaller-ticket loans below ₹10 lakh still require closer monitoring and risk assessment.
Key Questions Answered
As of August 2026, affordable housing accounts for nearly 68% of India's active housing loans.
Housing finance companies (HFCs) increased their share of the affordable housing portfolio outstanding from 26.9% in August 2021 to 31.4% in August 2026.
As of August 2026, Micro LAP accounts for a portfolio outstanding of ₹4.7 lakh crore across 83.1 lakh active loans, having recorded a compound annual growth rate (CAGR) of nearly 20% over the past five years.
