India’s gold loan interest rates for 2025 are the lowest available. A report from ICRA predicts retail mortgage loans from NBFCs and HFCs will hit ₹20 trillion by FY28. This is up from ₹13 trillion in FY25. Affordable housing finance companies (AHFCs) will grow their share to ₹2.5 trillion. Their current share is ₹1.4 trillion. ICRA expects NBFCs and AHFCs to see mortgage loan growth of 17–19% and 20–22% annually.
A M Karthik of ICRA stated strong demand will drive mortgage loan growth. Unsecured lending issues also limit other credit options. This sector shows strong performance historically. It has low loan losses and good business returns.
Housing finance firms held about two-thirds of total mortgage loans. AHFCs made up 11% of total assets under management in March 2025.