Who Borrowed the First Home Loan in India and When? Find Out the Full Story Here

Owning a home has always been one of the biggest dreams for Indian families. Today, banks offer a wide range of home loans, flexible EMIs, and competitive interest rates to make that dream easier. But decades ago, things were very different. Home loans weren’t even a common concept. So who was the first person to take this bold step? The answer is surprising and truly worth knowing.

India’s First Home Loan Borrower

The first Indian to take a home loan was D. B. Remedios, a resident of Mumbai. In 1978, long before home loans became mainstream, he borrowed ₹30,000 to build his dream house in Malad. This small loan marked a major turning point in India’s housing finance journey.

At that time, most people depended entirely on personal savings or family funds to buy a home. Remedios’s decision to opt for a bank loan was not just unusual, it was historic. His step opened the doors for millions of future homeowners.

Which Bank Approved India’s First Home Loan?

The first home loan was issued by HDFC, which later went on to become India’s largest private-sector bank and a pioneer in housing finance. In 1978, HDFC offered that first housing loan at an interest rate of 10.5%, a competitive rate for that era.

This move by HDFC changed the landscape of the Indian banking system. Until then, banks primarily issued loans for agriculture, trade, or small businesses. Personal loans, especially for housing, were rare. But once HDFC stepped in, other banks across India started offering home loans as well.

How Home Loans Evolved in India

Throughout the 1980s and 1990s, the idea of taking a loan to buy a home slowly gained acceptance. By 1994, home loan interest rates in India typically ranged between 11% and 14%. Even though these rates were high compared to today’s standards, the availability of housing loans itself was a huge relief for middle-class families dreaming of owning property.

Over the years, competition among banks, improved economic conditions, and government-backed reforms made home loans more accessible and affordable. Today, people can choose from a wide range of loan products, flexible repayment options, and even digital processing, something unimaginable in the 1970s.

A Small Step That Sparked a Big Change

The first home loan may have been just ₹30,000, but its impact was massive. It marked the beginning of India’s organized housing finance sector. Today, the foundation laid by that single loan supports millions of homeowners across the country.

D. B. Remedios didn’t just build a house, he helped build a system that now empowers countless Indians to achieve their dream of homeownership.