New Delhi [India], November 24 (ANI): India’s retail lending landscape continued its steady upward trajectory in the second quarter of FY26, driven by strong growth in secured large-ticket loans and a rebound in key consumer credit segments, according to a report by CRIF High Mark.
The latest edition of How India Lends reported that retail and consumption loan outstandings grew 18 percent year-on-year and 4.5 percent sequentially. This growth was supported by heightened demand for gold loans and auto loans, along with a resurgence in personal loans and credit cards. Public sector banks further strengthened their leadership across several major loan categories. The findings are based on data as of September 2025.
Gold loans emerged as the fastest-growing segment, with portfolio outstandings increasing 35.8 percent year-on-year and 8.6 percent quarter-on-quarter, accompanied by a 53 percent year-on-year surge in originations.
Auto loans also recorded robust growth, expanding 16.3 percent year-on-year, supported by rising average ticket sizes and an increasing share of PSU banks.
Home loan originations rebounded sharply by 25 percent quarter-on-quarter to Rs 3.02 lakh crore, driven by an 18 percent rise in volumes and a shift toward high-value loans. Loans above Rs 75 lakh accounted for 39.4 percent of originations, while PSU banks expanded their share to 50 percent.
Personal loan portfolios grew 12 percent year-on-year, with originations rising 32 percent quarter-on-quarter to Rs 2.92 lakh crore. Large-ticket personal loans above Rs 10 lakh expanded their share to 37.4 percent of total originations, fueled predominantly by PSU banks.
Two-wheeler loans registered nearly 15 percent year-on-year growth, though originations softened quarter-on-quarter due to monsoon-related seasonality. Higher-value loans in the Rs 1–1.5 lakh range continued to gain traction.
During Q2 FY26, consumer durable loans saw moderated sequential demand but remained strong on a yearly basis, posting 19 percent year-on-year growth. Credit card issuances continued a measured slowdown, falling to 44 lakh new cards, even as total outstanding balances rose to Rs 3.5 lakh crore and delinquencies improved across key risk categories. (ANI)
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