Key Trends in Affordable Housing Finance – India, FY25
- New Entrants with Big Ambitions: A consortium of private equity firms—Gaja Capital, Lightspeed, and Premji Invest—has launched People’s Home Finance, aiming to become the “HDFC of Affordable Housing.” Backed by ₹1,400 crore in equity, the platform targets the self-employed segment, which currently holds less than 3% of India’s ₹40 lakh crore home loan AUM.
- Tech-Driven Inclusion: The new platform is leveraging AI-led underwriting and data analytics to assess creditworthiness of borrowers without formal income proof—like small business owners and cash-based earners.
- Sector Growth Outlook: Affordable Housing Finance Companies (AHFCs) are on a growth trajectory, with 30% projected expansion in FY25, following a 27% jump in FY23 and 29% in FY24.
- Policy Support Continues: Schemes like PMAY-Urban 2.0 and PMAY-Gramin remain pivotal, offering interest subsidies up to 4% for loans up to ₹25 lakh, targeting EWS, LIG, and MIG households.
