Consumer durables, gold loans lead growth
Consumer durable loans recorded the fastest growth among major retail lending segments, rising 36.6% YoY and 21.4% QoQ in Q1 FY27. Sole-proprietor loans grew 24.4% YoY and 6.6% QoQ, while auto loans increased 18% YoY and 5.5% QoQ.
Gold loans continued to gain share within consumption lending. Their share of the portfolio rose to 12.1% in June 2026 from 8.9% a year earlier, while home loans accounted for 25.5% of consumption lending.
Gold loan originations, excluding priority sector gold loans, rose 47.3% YoY to ₹6.47 lakh crore in Q1 FY27 from ₹4.39 lakh crore in the year-ago quarter. The average ticket size increased 37.5% YoY to ₹2.17 lakh, although it declined 1.5% QoQ.
Personal loan portfolio outstanding increased 13.8% YoY and 3.1% QoQ, while home loans grew 10.5% YoY and 2.4% QoQ. Two-wheeler loans rose 12.4% YoY to ₹1.89 lakh crore, although quarterly growth remained flat.
Higher ticket sizes shape lending
The report also pointed to higher ticket sizes in several lending segments. Home loans above ₹75 lakh accounted for 41% of originations value in Q1 FY27, up from 36.8% in Q4 FY25. In auto loans, the ₹20 lakh-plus segment accounted for 18.2% of originations value.
Gold loans above ₹5 lakh represented around 40% of originations value despite accounting for 9.1% of total loans. In personal loans, those below ₹5 lakh increased to 50.7% of originations value.
Personal loan originations grew 34% YoY in Q1 FY27 to ₹3 lakh crore from ₹2.2 lakh crore in Q1 FY26, while QoQ growth moderated 6.1%. Consumer durable originations rose 32.1% QoQ.
Credit expands beyond top 100 cities
Credit penetration continued to increase beyond the Top 100 cities. Two-wheeler loans recorded 53% penetration, while consumer durable penetration rose to 43.5% in Q1 FY27 from 40.8% in Q1 FY26. Home loan penetration stood at 19.5%.
Consumer durable loans remained the largest entry point for new-to-credit borrowers, accounting for 45.5% of new-to-credit originations by volume, followed by gold loans at 18.3%.
Uttar Pradesh and Rajasthan emerged as key growth markets, while the southern states accounted for more than 70% of gold loan portfolio outstanding.
On asset quality, the report said pan-India delinquencies remained stable, although elevated PAR 31–90 in select low-ticket auto and personal loans, higher-ticket consumer durables and affordable housing remained areas to monitor.
