4 Ways How Millennials are Increasing the Market For Home Loans

4 Ways How Millennials are Increasing the Market For Home Loans


India is currently home to more than 400 million millennials, which is higher than the entire US population. It is 1/3rd of the total population of the country and contributes to 46% of India’s total workforce. Earlier, this group of the population was considered quite profligate in their spending habits. They used to mostly prefer rented apartments and vehicles rather than buying their own house and cars.

But that has literally changed after the pandemic, as the real estate market is advancing stupendously. And the millennials are responsible for giving the maximum push to it. As per the statistics, the number of millennials ranging from age 25 to 40 years has increased gradually.

The millennials of India recorded a purchase history of more than 50% of all houses in 2020. In 2022, this mark surpassed 54% and was constantly rising. Thus, such a peak buying practice has increased the market for home loans.

Here are a few of the ways to prove this is a reality.

1. Need for Attaining Financial Security

The millennials now understand the difference between appreciating and depreciating assets. They believe investing in a home loan is better than paying monthly rent for a property that isn’t yours. Seeking home loans at an early age also allows them to repay the money quickly before retirement hits.

Therefore, more and more millennials are now dropping their ideas of buying a luxury car but are keen on investing in a home loan 2023, to buy a property to their name. Apart from that, income tax savings, high rental income and other such financial benefits make it a good investment for millennials.

2. Availing the Perks of Step-Up Home Loan

The growth of income rate is substantially stable and higher for millennials in their 20s. Therefore, a new repayment facility has been introduced recently where the millennials will be stepping up with the EMIs every year after a specified time, assuming the annual salary hikes. Such flexibility has motivated millennials to find themselves ready for a home loan and to own a house. It is one of the most crucial ways using which the millennials are boosting the market for home loan 2023.

3. Higher Eligibility of Getting a Home Loan

Millennials, at an early age, do not have many financial burdens in comparison to those in their 30s or 40s. Thus, it is favourable for them when they apply for a home loan at the earliest. Millennials have low financial responsibility at an early age, which results in an extremely lowered income-to-EMI ratio.

Hence, the chances of home loan approval for a millennial is easier than for people in their older age, closer to retirement. Moreover, this also helps an individual become eligible for a higher loan amount. So, seeking this as an advantage, millennials now believe they can repay the loan on time due to their commitments to the initial work life.

4. Longer Tenures and Smaller EMIs

Millennials taking home loans at the earliest age are available with flexible and longer repayment tenures. The repayment tenure might go up to 30 years for some, giving them ample time and confidence to pay back the amount within the work-life years. Hence, this is one of the liberties that motivates millennials to take home loans 2023.


Millennials are framing the future of the real estate market in India. The young generation of today is moving out to build their career while intending to achieve their dreams. Owning a house is now on the bucket list for most of them, and the preferences are mostly for compact-comfortable housing with average amenities.

With the flexibility of getting easy approvals for home loans, millennials are making faster home-buying decisions than other age group populations in India.