Gen Z Home Loans Up 86%: Can You Buy at 25?
More Indians under 26 are taking home loans than ever before. Gen Z borrowers jumped 86% at Kotak, now making up 9% of its home loan book. If you're in your mid-20s, here's what this trend means for your homebuying decision.
A ₹50L home loan at 25 costs you less total interest than starting at 32 — the 7-year gap can save ₹8–12L.
Gen Z home loan borrowers surged — are you ready to buy at 25?
Key Takeaways
Check your CIBIL score now — lenders scrutinise young borrowers' credit history harder, so a score above 750 is non-negotiable before applying.
Compare home loan rates across at least 3 lenders (your salary bank, SBI, and one housing finance company like LIC HFL) — rate gaps of 0.3–0.5% on a ₹40L loan add up to ₹1.5L+ over the tenure.
Calculate the Section 24(b) and 80C tax benefits before deciding to rent vs buy — a ₹50L loan can save you up to ₹3.5L per year in tax deductions if structured correctly.
More Indians under 26 are taking home loans than ever before. Gen Z borrowers jumped 86% at Kotak, now making up 9% of its home loan book. If you're in your mid-20s, here's what this trend means for your homebuying decision.
Here's what happened: Gen Z home loan borrowers at Kotak Mahindra Bank jumped 86%, with their share rising to 9% of the total home loan book.. India's home-buying age is falling sharply as younger salaried professionals take on mortgages earlier than previous generations.. Rising incomes, longer loan tenures, and digital lending platforms are making it easier for under-30 borrowers to qualify for home loans..
What you should do: Check your CIBIL score now — lenders scrutinise young borrowers' credit history harder, so a score above 750 is non-negotiable before applying.. Compare home loan rates across at least 3 lenders (your salary bank, SBI, and one housing finance company like LIC HFL) — rate gaps of 0.3–0.5% on a ₹40L loan add up to ₹1.5L+ over the tenure.. Calculate the Section 24(b) and 80C tax benefits before deciding to rent vs buy — a ₹50L loan can save you up to ₹3.5L per year in tax deductions if structured correctly..
Co-applying with a parent increases your loan eligibility significantly AND lets both applicants claim tax deductions independently — most young buyers skip this and borrow less than they could.
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This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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