The India loan against property market size reached USD 758.00 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2,369.36 Billion by 2033, exhibiting a growth rate (CAGR) of 13.50% during 2025-2033. The India loan against property market is expanding due to increasing MSME credit demand in Tier 2-4 cities and financial institutions diversifying into non-housing loans. Rising secured loan adoption, flexible repayment options, and targeted lending initiatives are driving market growth and accessibility.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 758.00 Billion |
Market Forecast in 2033 | USD 2,369.36 Billion |
Market Growth Rate (2025-2033) | 13.50% |
Rising MSME Credit Demand in Tier 2-4 Cities
The growing need for credit among Micro, Small, and Medium Enterprises (MSMEs) in Tier 2-4 cities is driving the loan against property market in India. As these regions witness increasing economic activities, small businesses require accessible financing solutions to sustain and expand their operations. Traditional banking channels often have stringent lending requirements, making LAP an attractive alternative due to its secured nature and relatively lower interest rates. This trend is particularly significant in smaller cities where MSMEs face funding gaps and limited access to formal credit. In October 2024, Arka Fincap launched ‘Uday,’ a Small Ticket Loan Against Property (STLAP) scheme, targeting MSMEs with loan amounts ranging from INR 10 Lakh to INR 30 Lakh. Initially rolled out in five cities in Tamil Nadu, this initiative addresses the financial needs of small businesses in Tier 2-4 regions, promoting economic inclusion. With government initiatives supporting MSMEs and financial institutions introducing specialized LAP products, the demand for secured loans in smaller cities is expected to rise. This shift enables business expansion, improves credit accessibility, and fosters regional economic development, positioning LAP as a crucial funding option for small enterprises in emerging markets.
Expansion of Non-Housing Loan Portfolios
The diversification of financial institutions into non-housing loan segments is a key driver of the Loan Against Property (LAP) market in India. Lenders are increasingly focusing on secured loans beyond traditional home financing to improve profitability and balance their lending portfolios. The LAP segment, being asset-backed, offers lower risk compared to unsecured loans, making it a preferred choice for lenders aiming to expand their non-housing portfolios. With growing business needs and personal financial requirements, borrowers are seeking flexible LAP options, prompting financial institutions to introduce dedicated loan verticals. PNB Housing Finance announced the launch of a dedicated LAP vertical under its retail segment in April 2025. This initiative aims to increase its non-housing portfolio to 30%, offering higher loan limits and flexible repayment terms. By focusing on LAP, the lender is diversifying its revenue sources while catering to a broader customer base seeking secured credit solutions. As more financial institutions recognize the potential of LAP in strengthening their non-housing loan segments, the market is expected to witness increased product innovation, competitive interest rates, and improved lending accessibility. This shift enhances credit availability for businesses and individuals while supporting financial institutions' long-term growth strategies.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on property type, interest rate, and tenure.
Property Type Insights:
The report has provided a detailed breakup and analysis of the market based on the property type. This includes self-occupied residential property, rented residential property, commercial property, and self-owned plot.
Interest Rate Insights:
The report has provided a detailed breakup and analysis of the market based on the interest rate. This includes fixed rate and floating rate.
Tenure Insights:
A detailed breakup and analysis of the market based on the tenure have also been provided in the report. This includes up to 5 years, 6-10 years, 11-24 years, and 25-30 years.
Region Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Property Type Covered | Self-Occupied Residential Property, Rented Residential Property, Commercial Property, Self-Owned Plot |
Interest Rate Covered | Fixed Rate, Floating Rate |
Tenure Covered | Up to 5 Years, 6-10 Years, 11-24 Years, 25-30 Years |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: