How are home loans influencing India’s residential real estate market?

Home loans play a pivotal role in driving housing demand in India by increasing affordability and enabling wider property ownership among middle-income segments.

• Interest Rate Sensitivity: The RBI influences home loan rates, impacting buyers' affordability.
• Loan-to-Value (LTV) Ratios: Banks offer LTV ratios of up to 80-90%, minimizing initial down payments.
• PMAY & CLSS: Government-backed loans under Pradhan Mantri Awas Yojana provide interest subsidies.
• Tax Benefits: Deductions on principal (Section 80C) and interest (Section 24) make loans more attractive.
• Competition Among Lenders: Banks and HFCs offer flexible EMI plans and balance transfers.

Overall, easy credit availability and government subsidies have spurred residential sales across income brackets.