Housing Finance in Indian States
• The housing finance landscape in India shows clear regional disparities and institutional preferences. Maharashtra leads by a wide margin with over ₹7.5 lakh crore in total housing loans, followed by Karnataka (₹3.6 lakh crore) and Tamil Nadu (₹2.74 lakh crore). These three states together contribute nearly one-third of the total housing finance market, reflecting strong urbanization, higher property demand, and financial penetration.
• States like Uttar Pradesh (₹2.2 lakh crore) and Rajasthan (₹1.36 lakh crore) show a balanced share between Public Sector Banks (PSBs) and Private Sector Banks (PVBs). However, in Delhi (₹1.19 lakh crore), private and public banks dominate completely, with no role for RRBs.
• Despite large populations, Bihar (₹38k crore), Jharkhand (₹18k crore), and Odisha (₹34k crore) remain relatively underpenetrated in terms of housing finance. The North-East (Assam, Tripura, Mizoram, etc.) shows very small loan volumes, often below ₹5,000 crore, highlighting low credit access and housing demand in these regions.
• Telangana (₹2.83 lakh crore), Andhra Pradesh (₹1.48 lakh crore), and Kerala (₹1.28 lakh crore) show high housing loan volumes, though Kerala’s heavy dependence on PSBs vs Telangana’s stronger Private Bank presence reflects different financing patterns. Puducherry and Andaman-Nicobar remain marginal contributors.
| State | Housing Finance Companies | Public Sector Banks | Private Sector Banks | Regional Rural Banks | Total |
|---|---|---|---|---|---|
| Uttar Pradesh | 58,819 | 86,991 | 72,502 | 3,342 | 2,21,654 |
| Madhya Pradesh | 31235.00 | 42495.00 | 27595.00 | 2185.00 | 103509.00 |
| Rajasthan | 34522.00 | 60425.00 | 37658.00 | 3453.00 | 136059.00 |
| Haryana | 15739.00 | 44231.00 | 65904.00 | 1426.00 | 127299.00 |
| Delhi | 26849.00 | 48489.00 | 44153.00 | - | 119491.00 |
| Punjab | 7690.00 | 27949.00 | 24162.00 | 593.00 | 60393.00 |
| Chhattisgarh | 5553.00 | 17764.00 | 7652.00 | 1716.00 | 32684.00 |
| Uttarakhand | 8936.00 | 12769.00 | 8865.00 | 1180.00 | 31750.00 |
| Himachal Pradesh | 162.00 | 10071.00 | 428.00 | 806.00 | 11467.00 |
| Chandigarh | 2323.00 | 8048.00 | 3326.00 | - | 13696.00 |
| Jammu and Kashmir | 51.00 | 2519.00 | 10699.00 | 432.00 | 13702.00 |
| Ladakh | - | 73.00 | 442.00 | 4.00 | 519.00 |
| West Bengal | 13341.00 | 68471.00 | 29776.00 | 5208.00 | 116796.00 |
| Bihar | 5737.00 | 26236.00 | 5229.00 | 980.00 | 38183.00 |
| Jharkhand | 3998.00 | 12099.00 | 1967.00 | 488.00 | 18552.00 |
| Odisha | 5795.00 | 21768.00 | 5783.00 | 863.00 | 34208.00 |
| Assam | 2136.00 | 14151.00 | 3765.00 | 325.00 | 20377.00 |
| Tripura | 226.00 | 2018.00 | 231.00 | 922.00 | 3396.00 |
| Mizoram | - | 1400.00 | 14.00 | 1198.00 | 2612.00 |
| Manipur | 17.00 | 1871.00 | 146.00 | 43.00 | 2077.00 |
| Meghalaya | - | 1085.00 | 7.00 | 254.00 | 1345.00 |
| Sikkim | 1,113 | 1,685 | 7 | - | 2,805 |
| Arunachal Pradesh | 3 | 893 | 0 | 75 | 971 |
| Nagaland | 0 | 562 | 12 | 7 | 582 |
| Gujarat | 31,891 | 80,523 | 1,57,729 | 2,257 | 2,72,399 |
| Maharashtra | 1,12,044 | 2,85,636 | 3,49,933 | 2,445 | 7,50,057 |
| Dadra & NH and Daman & Diu | 40 | 1,004 | 939 | - | 1,984 |
| Goa | 613 | 7,396 | 2,769 | - | 10,779 |
| Lakshadweep | - | 26 | - | - | 26 |
| Tamil Nadu | 65,934 | 1,15,471 | 92,446 | 501 | 2,74,352 |
| Karnataka | 72,461 | 1,52,847 | 1,31,888 | 2,815 | 3,60,011 |
| Telangana | 76,068 | 97,458 | 1,03,450 | 6,713 | 2,83,689 |
| Andhra Pradesh | 30,807 | 90,195 | 25,104 | 2,632 | 1,48,738 |
| Kerala | 11,040 | 72,963 | 41,010 | 3,561 | 1,28,574 |
| Puducherry | 671 | 2,246 | 1,292 | 85 | 4,294 |
| Andaman and Nicobar Islands | - | 752 | 6 | - | 758 |
| Loans Not Alloted to Any State | 0 | 49,763 | 0 | 624 | 50,386 |
Units: INR Cr
• Housing Finance Companies (HFCs) play a strong role in Maharashtra, Tamil Nadu, and Telangana, reflecting higher competition with banks. Public Sector Banks (PSBs) dominate in Uttar Pradesh, Bihar, Odisha, and Assam, showing that government-backed institutions remain key in less financially developed states. Private Sector Banks (PVBs) have gained strong market share in Gujarat, Maharashtra, Karnataka, and Telangana, suggesting urban customers prefer faster, flexible financing. Regional Rural Banks (RRBs) have a niche but crucial role in states like Uttar Pradesh, Telangana, and Kerala, supporting semi-urban and rural housing demand.
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