Mortgage Loan Market Sees Growing Interest in Residential and Commercial Property Financing
India’s property-backed lending market is gaining attention as borrowers increasingly look at residential and commercial assets to meet major financial requirements. Recent industry data indicate strong momentum in secured lending, with lenders expanding their focus on Loan Against Property (LAP) products for individuals, self-employed borrowers and businesses.
Commercial real estate lending has shown particularly strong growth. RBI data reported in July 2026 showed that NBFC loans to commercial real estate rose 40.2% year-on-year to ₹1.20 lakh crore by May 2026, supported by office leasing, global capability centres and data-centre expansion.
Residential property also continues to remain an important source of secured financing. Borrowers can leverage eligible residential properties for purposes such as business expansion, education, renovation, debt consolidation and other financial needs. Industry reports also highlight increasing adoption of digital lending and specialised LAP products, particularly among self-employed individuals and small businesses.
At the same time, borrowers are becoming more conscious of interest rates and repayment costs. The RBI kept the repo rate at 5.25% in June 2026, while lenders continue to assess borrowers based on credit profile, income, property value and repayment capacity.
With both residential and commercial properties playing an important role in secured borrowing, borrowers should carefully compare eligibility requirements, interest rates, loan-to-value limits, charges and repayment terms before choosing a mortgage loan.
