Serving the Unserved: A Market Segmentation and Price Discrimination-Based Customer-Centric Approach to Home Loans in India

Abstract

In India, despite the expansion of the financial sector, a large portion of the population remains underserved or entirely excluded from formal housing finance. This includes informal workers, low-income households (LIG), rural migrants, and small-scale entrepreneurs.

Traditional home loan models often fail to cater to these groups due to rigid documentation requirements, limited income visibility, and inflexible pricing. This project seeks to explore and propose a market segmentation and price discrimination-based model tailored to these unserved groups, with a focus on affordability, accessibility, and customer-centric product design.