New Delhi, February 17, 2026: The Indian home loan market is undergoing a remarkable transformation, with young buyers increasingly taking the lead in property purchases. Easy access to the internet and digital tools has enabled Millennials and Gen Z across cities and villages to buy homes and apply for loans more efficiently than ever before.
Millennials and Gen Z at the Forefront
In the past, most Indians would purchase homes near retirement. Today, 90–95% of homebuyers are Millennials and Gen Z, according to a recent report on home loan trends. Affordable interest rates and easier access to credit have accelerated this shift, making homeownership achievable for younger generations.
About the Report
The report, titled “How Bharat Finances Its Housing Dreams: A Consumer Insights Report on Housing Inclusion,” was jointly released by BASIC Home Loan, Paytm, and CommsCredible, with former National Housing Bank (NHB) Chairman R.V. Verma presenting the findings. It highlights how technology and changing consumer behaviour are helping Indians realise their housing aspirations.
Online Applications and Tech-Savvy Borrowers
The report reveals that nearly 72% of buyers under 40 prefer applying for home loans online. They can compare different lenders, upload necessary documents, and track loan status directly from their mobile phones. Surprisingly, even 46–47% of buyers over 60 are comfortable applying digitally, signalling that online loan applications have become mainstream.
The Role of Digital Tools
Atul Monga, Founder & CEO of BASIC Home Loan, explains,
“India’s digital transformation is the key driver behind this shift. Apps like DigiLocker allow people to store and share documents online, simplifying what used to be a long and tedious paperwork process. Nearly 80% of people under 35 now use DigiLocker for most of their work, especially when applying for home loans, speeding up approvals and making the process easier for both buyers and lenders.”
Rural Buyers Join the Trend
Digital home loan adoption is not limited to urban areas. The report indicates that buyers in small towns and villages are increasingly using online loan platforms. Growing digital connectivity, smartphone penetration, and financial awareness are reducing the urban-rural divide, bringing homeownership within reach for more Indians.
Sensitivity to Interest Rates and EMI Preferences
Modern borrowers are highly sensitive to interest rates. While speed and safety of approval remain important, many buyers prefer lenders who offer quick and secure processing, even if interest rates are slightly higher. The report also notes spending patterns on monthly EMIs: low-income buyers prefer EMIs around 25% of monthly income, while higher-income buyers are comfortable spending up to 40%, reflecting growing confidence and willingness to invest in premium properties.
The findings underscore that digital tools, low-cost credit, and financial literacy are reshaping India’s housing landscape, empowering a younger generation to buy homes earlier and more confidently than ever before.
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