Artificial Intelligence in Home Loan Services in India: An Analysis of Trends, Opportunities, and Challenges

Abstract: In today’s era, Ai have revolutionized all segments of the industries including the banking and financial services, The tedious work has been done more efficiently because of AI. It is being proofed that AI has become a very important phenomenon in banking and financial services. Decisions are taken without any mistake and customers are given better services. In Indian banking system AI is used in especially in approving and disbursement of the loan cases which reflects in faster loan approval procedure experienced by the customers. The reason behind this study is to examine the emerging trends, Opportunities and challenges in the Indian home loan services. For the study secondary and published data is utilized. The information is collected from the reliable sources such as Peer Reviewed Journals, RBI Reports, NHB reports, Banking and housing financial corporations, Government of India’s authenticated publications, Different reports published by the businesses. The information is utilized for the study from 2019 to 2025. The research is based on descriptive and analytical method. The information available is analyzed and being presented in the study. On the basis of the research it is came to known that AI is used in measurably all steps of home loan application process and it is increasing its limits. Ai is used in the following steps -customer registration, Credit assessment, Verification of documents, Fraud’s detection, Property valuation, Better customer services. In the study, the opportunities created by the AI is discussed which includes Increase in work efficiency, Reduction in time of home loan approval, Risk management is done more efficiently, Able to provide personalized services to the customers, Similarly, there are certain challenges while Using AI which are Data Privacy, Cyber security, AI Algorithmic Bias, Transparency in decision making, Regulatory compliances. To conclude the study as per the findings is that the AI should be used or implemented very carefully, and with proper planning, this will help & strengthen Indian banking and Homeloan services. AI in home loan will increase its efficiency, help in inclusiveness of all types of customers, and longterm dependability will be seen. Also, because of AI Financial institutions and policymakers will take better decisions.