Loan sourcing in Q1 FY27 moderated from the previous quarter, while unsecured sourcing grew 26% year-on-year. Secured lending continued to account for the majority of the retail portfolio by value.
Consumption-led credit gained prominence during the quarter, with consumer durable loans recording strong growth and personal loans maintaining their growth trajectory. New credit card sourcing also showed signs of renewed traction.
Asset quality remained stable, with net 30+ delinquency at 3.0% in June 2026, unchanged from March 2026 and lower than 4.1% in June 2025.
NBFCs continued to strengthen their presence across consumption-led products, particularly personal loans, consumer durable loans and two-wheeler loans, while banks maintained a strong presence in larger-ticket secured products.
Personal loans
Personal loan AUM stood at ₹16.2 lakh crore as of June 2026, up 14% year-on-year. New loan sourcing rose 32% year-on-year to ₹3 lakh crore in Q1 FY27.
NBFCs continued to deepen their presence in small-ticket lending below ₹30,000. Net 30+ delinquency stood at 2.3% in June 2026.
Credit cards
Credit card AUM stood at ₹3.15 lakh crore as of June 2026, down 0.1% year-on-year. New card sourcing showed signs of renewed traction, supported by increasing ticket sizes.
The segment above ₹3 lakh accounted for around 37% of portfolio value in June 2026. Net 30+ delinquency stood at 3.5%.
Consumer durable loans
Consumer durable loan AUM stood at ₹1.1 lakh crore as of June 2026, up 37% year-on-year. New loan sourcing grew 36% year-on-year in Q1 FY27.
NBFCs and private banks continued to focus on loans below ₹35,000. Net 30+ delinquency declined to 1.5% in June 2026 from 1.9% in March 2026.
Two-wheeler loans
Two-wheeler loan AUM stood at ₹1.8 lakh crore in June 2026, while sourcing grew 17% year-on-year to ₹0.3 lakh crore in Q1 FY27.
The industry is gradually shifting towards higher-value vehicle financing, with concentration moving towards the ₹1-2 lakh ticket-size segment. Asset quality remained stable.
Home loans
Home loan AUM stood at ₹43.6 lakh crore as of June 2026, up 13% year-on-year. The average ticket size of new loans increased to ₹34.8 lakh in Q1 FY27 from ₹32.2 lakh in Q1 FY26.
Banks increased their presence in the premium housing finance segment above ₹80 lakh. Asset quality remained stable in June 2026.
Auto loans
Auto loans continued to expand at a steady pace, supported by new originations and increasing ticket sizes.
Both public and private sector banks increased their focus on higher-value auto loan financing, with gains in portfolio share for the segment above ₹20 lakh.
Manish Jain, Country Managing Director of Experian India, said India’s credit market continues to show resilience, with sustained portfolio growth and good asset quality providing a foundation for the next phase of expansion.
“The momentum in unsecured lending reflects the evolving credit needs of consumers, while the continued strength of secured portfolios points to a balanced market,” Jain said.
Jain said traditional portfolio-level measures such as loans per user or balances alone may not provide a like-for-like comparison of credit quality over time as the market has broadened and borrower profiles have changed.
He said a more contemporary assessment should consider vintage performance, delinquency transition rates, high-frequency bureau reporting and performance across comparable borrower and product segments. Viewed through these measures, Jain said, the underlying credit quality of the market remains strong even as the composition of credit evolves.