Published on December 22, 2025 | By LoanPao Team

In a significant announcement that underscores the resilience and growth of India's housing finance sector, State Bank of India (SBI) Chairman C S Setty revealed that the bank's home loan portfolio has crossed ₹9 lakh crore and is on track to surpass the ₹10 lakh crore mark in the next fiscal year. This projection comes amid strong demand driven by favorable interest rates, improving economic conditions, and increasing urbanization across the country.

SBI's Home Loan Journey: From ₹1 Lakh Crore to ₹10 Lakh Crore

SBI, India's largest lender and premier mortgage provider, has seen remarkable growth in its home loan book over the years. Starting from ₹1 lakh crore in March 2011, the portfolio reached ₹9 lakh crore by November 2025. The bank closed FY25 (April 2024 to March 2025) with ₹8.31 lakh crore, marking a 14.4% year-on-year growth.

Chairman Setty highlighted, "Today my home loan portfolio is more than ₹9 lakh crore...this is the single largest business unit in the bank, over 20 per cent of our total assets." At a projected 14% growth rate, SBI is poised to achieve the ₹10 lakh crore milestone in FY27 (April 2026 to March 2027).

Factors Driving the Surge in Home Loan Demand

The robust growth is fueled by several key factors:

• Economic Recovery and Urbanization: India's economy is rebounding strongly post-pandemic, with increased disposable incomes and a push towards home ownership in urban centers like Delhi NCR, Mumbai, and Bengaluru.
• Low Interest Rates: Current home loan rates starting at 8.5-9% p.a. make borrowing attractive. LoanPao offers competitive rates from 10.99% p.a. for instant home loans in Delhi NCR.
• Government Initiatives: Schemes like PMAY (Pradhan Mantri Awas Yojana) continue to boost affordable housing demand.
• RAM Segment Growth: SBI's Retail, Agriculture, and MSME (RAM) loans, which constitute 67% of its portfolio, crossed ₹25 lakh crore in September 2025, with MSME growing at 17-18%.

Setty noted, "We see a robust credit growth, particularly from the RAM segment." This overall credit expansion, revised to 14% for FY26, supports the home loan surge.

Implications for Borrowers in Delhi NCR and India

For prospective home buyers in Delhi NCR—areas like New Delhi, Noida, Gurgaon, and Faridabad—this news signals abundant liquidity and competitive offerings from banks like SBI. With home loans forming over 20% of SBI's assets, borrowers can expect faster approvals and flexible terms.

However, maintaining a low NPA (Non-Performing Asset) ratio is crucial. SBI closed FY25 with a gross NPA of 0.72% in home loans, one of the lowest in the sector, thanks to proactive monitoring. At LoanPao, we recommend checking your CIBIL score (free on our platform) before applying to ensure eligibility.

Tips for Securing a Home Loan in 2026

To capitalize on this growth:

1. Compare Rates: Use LoanPao's EMI calculator to compare SBI and other lenders' offers starting @10.99% p.a.
2. Improve Credit Score: Aim for 750+ to get the best rates.
3. Opt for Digital Processes: LoanPao's paperless applications ensure same-day approvals.
4. Consider Add-ons: Explore SBI's gold loans or unsecured personal loans for down payments.

Setty also mentioned growth in gold loans and express credit, indicating diversified options for borrowers.

Future Outlook for Housing Finance

With India's real estate market projected to grow at 15% annually, SBI's milestone reflects broader trends. For Delhi NCR residents, this means more opportunities for home construction, renovation, or purchase loans.

At LoanPao, we're here to guide you through instant home loans tailored to your needs. Apply today and benefit from low rates and expert advice.