India’s Expanding Housing Loan Market
NHB Report 2024: Housing Finance Trends and Regional Disparities in India: The National Housing Bank (NHB) has released its Trends and Progress of Housing in India 2024 report, which outlines major developments in housing finance, credit growth, and policy impact. As of September 30, 2024, outstanding individual housing loans reached ₹33.53 lakh crore, with a 14% growth compared to the previous year. Beneficiary segmentation reveals that EWS and LIG account for 39%, MIG 44%, and HIG 17%, indicating growing credit inclusivity.
Loan Disbursement and Price Index Trends
From April to September 2024, the housing loan disbursement was ₹4.10 lakh crore, contributing to a full-year figure of ₹9.07 lakh crore for FY 2023–24. The NHB-RESIDEX Housing Price Index recorded a 6.8% YoY rise by September 2024, compared to 4.9% in 2023, signaling rising demand and property price appreciation, especially in urban locations.
Government Schemes and Urban Infrastructure Push
Flagship schemes like PMAY-Gramin (PMAY-G) and PMAY-Urban (PMAY-U) are key enablers in reducing the affordability gap and promoting rural-urban housing balance. Additionally, the Urban Infrastructure Development Fund (UIDF) supports state-level infrastructure growth, thereby enhancing the housing market in Tier-II and Tier-III cities.
Persistent Regional Disparities
The report highlights a sharp regional imbalance in housing credit. While Southern, Western, and Northern regions receive major disbursements, Eastern and Northeastern states remain underserved. This credit gap challenges the vision of housing inclusivity and requires region-specific policy responses and tailored lending frameworks.
The Role of Housing Finance Companies (HFCs)
Housing Finance Companies (HFCs) play a crucial role in extending credit access to diverse groups. Their customer-centric approach, flexible terms, and localised lending practices make them essential. However, their limited presence in remote areas hampers effectiveness, and the report calls for strengthening HFC infrastructure and outreach.
Outlook and NHB’s Role
Looking ahead, continued support for PMAY 2.0, rising urbanisation, and digitisation of land records are expected to strengthen the sector. Technology-based construction models are gaining momentum, promising sustainable housing expansion. The National Housing Bank, established in 1988 under the NHB Act, 1987, oversees HFCs while RBI handles regulation, maintaining NHB’s dual role as a promoter and supervisor.
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NHB Report 2024: Housing Finance Trends and Regional Disparities in India:
| Feature | Details |
| NHB Report Name | Trends and Progress of Housing in India 2024 |
| Outstanding Housing Loans (Sep 2024) | ₹33.53 lakh crore |
| Major Beneficiary Groups | MIG (44%), EWS & LIG (39%), HIG (17%) |
| HPI Growth (YoY Sep 2024) | 6.8% (vs 4.9% previous year) |
| Disbursement FY 2023–24 | ₹9.07 lakh crore |
| Government Schemes | PMAY-U, PMAY-G, UIDF |
| Regional Disparity | Low credit in Eastern & Northeastern states |
| NHB Established | July 9, 1988 (under NHB Act, 1987) |
| NHB Regulates | Supervises HFCs (Regulation: RBI) |
