Home First Finance’s 25% Loan Book Growth: What It Means for Borrowers

Why Home First Finance’s growth matters

The recent headline – Home First Finance sees 25% loan book growth despite rising rates, says CEO Manoj Viswanathan – signals a notable shift in the Indian housing‑finance market. Even as interest rates have moved higher, one lender is expanding its portfolio. For borrowers of home loans, loans against property (LAP) and other secured credit, this trend offers clues about market sentiment, lender appetite, and potential opportunities.

Who is likely to feel the impact?

• Existing home‑loan borrowers – A growing loan book can mean lenders are confident in their asset quality, which may translate into more flexible restructuring options for borrowers facing rate hikes.
• Prospective home‑buyers – If lenders are willing to grow despite higher rates, new loan applications may still be entertained, albeit at rates that reflect the prevailing RBI policy corridor.
• LAP borrowers – A surge in secured lending often includes loan‑against‑property products, as lenders leverage the collateral value of residential or commercial assets.
• Real‑estate developers – Strong loan‑book growth may indicate continued funding for project finance, indirectly supporting the supply of homes for end‑users.

What does “growth despite rising rates” indicate?

1. Robust demand – Buyers may still be motivated by price appreciation, tax benefits under Section 80C, or the need for a stable home before major life events.
2. Lender confidence in credit assessment – Home First Finance likely relies on stringent underwriting, good CIBIL score thresholds, and thorough property valuation, which reassures the market.
3. Potential for competitive pricing – When a lender expands, it may offer promotional rates, lower processing fees, or waivers to attract customers, especially in tier‑2 and tier‑3 cities.
4. Shift in risk appetite – Even with higher policy rates, some NBFCs and banks are comfortable extending credit, suggesting that overall macro‑risk perception remains manageable.

Practical steps for borrowers

1. Review your current loan terms

• Check your existing interest rate (fixed vs floating) and compare it with the range typically offered by lenders (often 8‑10% for floating home loans, higher for LAPs).
• Use the EMI calculator on MyLoanWala to see how a rate change would affect your monthly payment.

2. Re‑evaluate your credit health

• A good CIBIL score (above 750) gives you leverage to negotiate better terms or switch lenders.
• Ensure your credit report is error‑free; dispute any inaccuracies promptly.

3. Explore refinancing options

• If you have a floating rate loan, consider locking in a fixed rate if you anticipate rates staying high.
• Compare offers from multiple lenders – the growth of Home First Finance suggests they may have attractive packages, but other banks may also be competitive.

4. Keep an eye on loan‑against‑property offers

• LAPs can be a cheaper alternative to unsecured personal loans for funding education, business, or renovations.
• Verify the loan‑to‑value (LTV) ratio; most lenders allow up to 70‑75% of the property’s market value.

5. Stay updated with official announcements

• RBI’s monetary policy decisions directly influence home‑loan rates. Follow the RBI releases and major financial news portals.
• Since the headline is based on a recent report, details such as exact interest rates or fee structures may evolve. Always confirm the latest numbers with the lender before signing any agreement.

What to watch for in the coming months

• Policy rate movements – If the RBI raises the repo rate further, most floating home‑loan rates will follow suit.
• Regulatory changes – New RBI guidelines on loan‑to‑value ratios or capital adequacy can affect how aggressively lenders expand.
• Market competition – Other NBFCs and banks may respond to Home First Finance’s growth with promotional schemes, especially during festive seasons.

FAQ

Q: Does a 25% loan‑book growth mean lower interest rates for me? A: Not necessarily. Growth reflects demand and lender confidence, but rates still depend on RBI policy, borrower credit profile, and loan specifics.

Q: Should I refinance my existing home loan now? A: Evaluate your current rate, remaining tenure, and any pre‑payment penalties. Use an EMI calculator and compare offers before deciding.

Q: Are loan‑against‑property rates higher than home‑loan rates? A: Generally, LAP rates are a bit higher because the loan is unsecured against the borrower’s income, but they remain lower than unsecured personal loans.

Q: How can I benefit from lenders expanding their loan books? A: Look for promotional interest rates, fee waivers, or higher LTV ratios that may be offered to attract new customers.

Q: Where can I find the most up‑to‑date loan offers? A: Check the lender’s official website or use comparison platforms like MyLoanWala for the latest rates and terms.

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Ready to see how the latest market dynamics affect your borrowing power? Compare home loan and LAP offers on MyLoanWala today and find the best deal for your needs.

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Source: based on recent news reported by CNBC TV18 on 28 October 2026. Details may change — please confirm the latest terms with your lender.