For millions of Indian households, buying a home remains the single biggest financial decision of their lives. Data from the Economic Survey 2025–26 shows just how dramatically this choice has reshaped household finances over the past decade. Outstanding individual housing loans have more than tripled, rising from around ₹10 lakh crore at the end of March 2015 to over ₹37 lakh crore by March 2025. As a share of the economy, housing loans have climbed from about 8 per cent of GDP to over 11 per cent, underlining a much deeper financialisation of housing demand.
Put simply, far more families are now relying on formal credit to fund home ownership, committing themselves to long-term repayment schedules that influence nearly every other financial decision they make. This sharp rise in housing finance is not only a reflection of higher property prices, but also a structural shift in how Indian households build wealth.
Unlike short-term personal loans, home loans typically run for 15 to 25 years. This forces borrowers to plan their income, savings and spending over long periods. For many families, the monthly home loan EMI becomes the financial anchor, around which other goals such as retirement planning, children’s education, insurance cover and investments are structured.
A decade ago, home purchases were often driven by large upfront savings, family support or informal borrowing. Today, ownership is increasingly linked to structured, long-term EMIs supported by documented and verifiable income. In effect, home buying in India has moved away from being a largely cash-heavy activity to a credit-led one.
The rising share of housing loans in GDP also highlights housing’s growing importance in the broader economy. An increase from 8 per cent to over 11 per cent of GDP suggests that home loans are expanding faster than overall economic growth, and that housing is absorbing a larger share of national income and institutional credit than before.