33% CAGR Propels Tata Capital's Housing Finance to New Heights
- Tata Capital’s housing finance portfolio grew at a 33% CAGR from FY23 to FY25, reaching Rs 38,400 crore in March 2025.
- Home loans now make up 17% of Tata Capital’s total loan book, reflecting strong demand and expanding reach.
- The company’s tech-driven underwriting and focus on semi-urban markets drive its growth in India’s underpenetrated housing finance sector.
Tata Capital has witnessed robust growth in its housing finance segment, emerging as a key pillar in its broader retail expansion strategy. The company’s housing finance portfolio has grown at a strong compounded annual growth rate (CAGR) of 33 percent between FY23 and FY25, positioning Tata Capital to capitalise on the significant structural opportunities in India’s under-penetrated housing finance market.
As of March 2025, Tata Capital’s home loan portfolio stood at Rs 38,400 crore, representing 17 percent of its consolidated gross loan book. This marks a notable increase from Rs 30,850 crore in FY24 and Rs 22,100 crore in FY23, reflecting a year-on-year growth of 24 percent and an impressive two-year
growth of 74 percent. These figures underscore sustained demand for residential credit and Tata Capital’s expanding footprint in the sector.
The company offers a diverse range of over 25 lending products catering to salaried individuals, entrepreneurs, and small businesses, ensuring wide market coverage. With India’s mortgage-to-GDP ratio at just 17 percent as of FY25 significantly lower than countries like the UK (64 percent) and the USA (60 percent) the home loan market presents massive untapped potential. The segment is expected to grow at a 16 percent CAGR from FY25 to FY28, driven largely by increasing urbanisation.
Retail loans accounted for 62 percent of Tata Capital’s loan portfolio in FY25, up from 57 percent in FY23, highlighting the company’s strong focus on consumer-centric financing. Key drivers of this growth include technology-enabled underwriting, branch-level origination, and deeper penetration into semi-urban markets strategies that continue to propel Tata Capital’s housing finance business forward.
