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Non-bank lenders' home loan growth likely to slow down in FY26: Crisil
Nov-20-2025

Crisil in its latest report has said that non-bank lenders' home loan growth will slow down in FY26 owing to aggressive play by state-run banks in the market. It stated non-bank lenders' assets under management are likely to grow by 12-13 per cent, down from 14 per cent in the preceding fiscal, despite a slew of tailwinds.

It stated the challenges faced by non-bank lenders include intense competition from banks, which continue to dominate the prime home loan segment. Crisil’s director Subha Sri Narayanan said ‘Public sector banks have upped the ante and surpassed prime-focused housing finance companies (HFCs) last fiscal and in the first half of this fiscal’.

Narayanan said competition in pricing is evident from the strong growth in lower-interest-rate home loans of banks, as the share of the sub-9 per cent interest rate portfolio increased to over 60 per cent as of March 31, 2025, from 45 per cent last year. Moreover, Narayanan said many large HFCs are facing increased customer churn through balance transfer cases. 


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