The report identified gold loans as the fastest-growing retail lending segment during the quarter, with originations surging 103% from a year earlier. Outstanding gold loan balances nearly doubled, supported by higher gold prices and growing consumer preference for secured borrowing.
Housing finance remained the largest contributor to retail credit portfolios, with home loan disbursements reaching a record ₹3.4 lakh crore during the quarter. Public sector banks accounted for 44% of new housing loan originations, while demand for loans above ₹1 crore continued to rise.
Non-banking financial companies (NBFCs) emerged as the fastest-growing lender category, posting a 97% increase in overall loan originations. In the gold loan segment, NBFC originations climbed 213% year-on-year, significantly outpacing the broader market.
The report also pointed to improving asset quality across retail lending categories. Delinquencies and fresh slippages declined across products including housing loans, personal loans, business loans, gold loans and credit cards. Gold loans recorded some of the lowest delinquency levels among retail credit products.
Meanwhile, business loan growth remained subdued, with originations increasing just 3% year-on-year, suggesting borrowers may be increasingly using gold-backed loans as an alternative source of financing.
The microfinance sector also showed signs of recovery. Industry-wide 30-plus day delinquency improved to 2.3% in March 2026 from 6.6% a year earlier, while disbursements rose 19% to nearly ₹79,000 crore.
“India’s retail credit market continues to demonstrate strong momentum, supported by healthy consumer demand and improving portfolio quality,” said Subhankar Mishra, Head of Strategy and Interim Managing Director at Equifax Credit Information. He added that the simultaneous rise in loan originations and decline in delinquencies reflects a more disciplined and sustainable lending environment.
The report said the combination of robust demand, improving repayment behaviour and growing preference for secured lending products positions the retail credit market for continued growth through the rest of 2026.
