RBI Rate Cuts Fuel 12% Housing Loan Surge, Young Borrowers Drive Growth

• Housing loans surged 12% year-on-year by December 2025, driven by RBI's 125 bps repo rate cut to 5.25%.
• Borrowers under 30 now account for 16% of new home loans, a significant jump from 9% in 2022, indicating early asset ownership.
• Average home loan ticket size increased from Rs 29 lakh to Rs 37 lakh, with joint ownership contributing 58%.
• Personal loans grew 35% YoY in 2025, led by a 77% surge in short-term, smaller ticket size loans for liquidity.
• Secured credit cards saw a strong 62% growth, while unsecured cards declined 21%, reflecting a shift towards structured credit building, especially among young first-time borrowers.

Why It Matters: RBI rate cuts spurred significant growth in housing and personal loans, with young borrowers increasingly entering the credit market.