India Home Equity Lending Market Overview, 2029

India Home Equity Lending Market Overview, 2029

Over the past several years, India's home equity loan sector has seen tremendous change as a result of rising real estate values, more urbanisation, and a burgeoning middle class. Home equity loans have grown in popularity as a means of funding large purchases, paying off debt, and making new business investments since they let homeowners borrow against the value of their real estate. In order to provide borrowers flexibility, these loans are usually issued as lines of credit or lump sum payments. Compared to Western markets, the home equity lending industry in India is still in its infancy, but it is expanding quickly. Home equity solutions are becoming more widely available from financial institutions and non-banking financial firms (NBFCs), taking advantage of the rising value of real estate and the comparatively unexplored market. Because collateral is included, these loans often have lower interest rates than unsecured loans, which makes them a desirable choice for borrowers with significant home equity. There are plenty of prospects in India's home equity lending business. More homeowners are probably going to use their home equity as collateral for a variety of financial needs as a result of rising property values and growing financial literacy. The market is further opened up by the growth of digital banking and fintech developments, which also improve the accessibility and efficiency of lending procedures. The industry does, however, also have to contend with difficulties including market awareness, regulatory barriers, and possible dangers related to variations in real estate values. Lenders have important responsibilities that include controlling defaults and ensuring appropriate value. Borrowers also need to be informed about the advantages and dangers of home equity loans to make informed decisions.

According to the research report ""India Home Equity Lending Market Overview, 2029,"" published by Bonafide Research, the India Home Equity Lending market is anticipated to grow at more than 7% CAGR from 2024 to 2029. Technological innovations, regulatory adjustments, and a rise in fintech company involvement are some of the recent developments in India's home equity lending business. Home equity lending is one of the many initiatives that the Reserve Bank of India (RBI) has put in place to guarantee the stability and expansion of the housing finance industry. Furthermore, customers now have simpler access to home equity loans because to the shortened loan application and approval processes brought about by the introduction of digital platforms. Big data and artificial intelligence are being used by fintech businesses to increase the accuracy of creditworthiness assessments, which in turn is expanding their client base. Working together, traditional banks and fintech companies are also more likely to improve the effectiveness and accessibility of home equity financing services.

Fixed Rate Loans and Home Equity Lines of Credit (HELOCs) are the two main segments of the Indian equity lending sector. With fixed rate loans, borrowers may expect stable and predictable payments throughout the course of the loan at a specified interest rate. Conversely, home equity loans (HELOCs) let borrowers use the equity in their homes as collateral to access money as required, just like a credit card. The guarantee of constant interest rates, which protects borrowers from market swings, has led to a steady increase in demand for fixed rate loans in India. Borrowers looking for long-term financial planning and budgetary assurance will find this steadiness especially appealing. In addition, people who value regular monthly installments more than borrowing flexibility tend to prefer fixed rate loans. On the other hand, borrowers seeking ease and flexibility are increasingly using home equity lines of credit. Within a predefined credit limit, borrowers can borrow, repay, and borrow again using a home equity line of credit (HELOC). This flexibility is appropriate for people with different budgets or for undertakings whose costs fluctuate, such house remodelling or schooling. Although each kind of equity loan option has advantages, Fixed Rate Loans are now the most popular alternative in India. Because Indian borrowers tend to be risk conservative, fixed rate loans provide stability and predictability that is particularly beneficial in these uncertain economic times. Furthermore, because of their simple structure, fixed rate products are frequently preferred by lenders and regulatory regimes, which makes them more attainable and desirable to a wider range of borrowers.

In India, banks are financial organisations that provide a variety of services, such as investments, loans, and deposits. Through their ability to facilitate transactions and offer financial support to both individuals and companies, they are vital to the nation's economy. The Reserve Bank of India (RBI) oversees the regulation of banks in India, which are divided into three categories: cooperative, commercial, and public sector banks. In India, online banking has become increasingly popular, particularly in light of the country's increasing digitization. Customers can use mobile applications or web-based platforms to conduct transactions and obtain financial services. Millions of Indians now find themselves able to conveniently use online banking, which provides services like financial transfers, bill payments, and account management from the comfort of their homes, thanks to the growing popularity of smartphones and internet connectivity. In India, credit unions are cooperative financial organisations run and controlled by its members, who usually have a similar link like a profession or community membership. These organisations offer banking-like services such savings accounts, loans, and financial advice. Despite being less common in India than regular banks, credit unions focus on the financial well-being of their members through a cooperative framework and cater to specialty markets. The non-bank financial institutions (NBFIs) and financial technology (fintech) enterprises that provide alternative financial services make up the Indian financial landscape. Peer-to-peer lending platforms, payment banks, mobile wallet providers, and microfinance organisations are examples of this. These organisations serve certain market niches and frequently use technology to provide creative solutions that close the gaps created by traditional banking. In India's financial industry, conventional banks continue to be the most dominant of these segments. Due to their vast branch networks, wide range of product offerings, and well-established brand names, public sector banks like State Bank of India (SBI) and private sector banks like HDFC Bank and ICICI Bank dominate the industry. Furthermore, regulatory frameworks support the reliability and stability of conventional banking establishments. Because of their extensive service offerings and dependability, banks continue to be the preferred option for most Indians, even in the face of the growth of alternative and online financial services.

In India, the home equity loan sector is dominated by a few big businesses. Prominent financial institutions including State Bank of India (SBI), HDFC Bank, ICICI Bank, and Axis Bank are well-known in this market and provide a variety of home equity solutions to meet the demands of different clientele. NBFCs like Bajaj Finserv, LIC Housing Finance, and PNB Housing Finance have made significant market contributions in addition to these conventional banks. Fintech firms such as KreditBee and IndiaLends are also gaining traction by using technology to target underserved markets and offering creative financing alternatives. All of these participants have a part in the market's explosive growth and expansion in India for home equity loans.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Home Equity market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Fixed rate Loans
• Home Equity line of Credits

By Service Providers
• Bank
• Online
• Credit Union
• Other

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the home equity industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.