The country’s retail lending portfolio rose to ₹170.2 lakh crore as of March 2026, marking a 16.6% year-on-year increase and a 4.6% quarter-on-quarter rise.
Consumption-led lending also maintained momentum, growing 15.3% YoY to ₹118.6 lakh crore, supported by steady expansion in personal loans, gold loans and consumer durable financing. Home loans continued their stable trajectory, reaching ₹44.4 lakh crore, up 9.4% YoY and 3.4% QoQ, while credit card balances remained largely flat year-on-year and declined sequentially.
Gold loans emerge as fastest-growing segment
Gold loans stood out as the strongest growth driver in FY26, with outstanding portfolios surging 50.4% YoY to ₹18.6 lakh crore, supported by higher collateral values and strong demand conditions. The segment also showed improving asset quality, reinforcing its role as a key pillar of secured lending.
Premiumisation drives higher ticket sizes
The report highlighted a clear shift toward higher-value borrowing, with portfolio growth outpacing growth in active loan accounts across categories. This indicates rising ticket sizes in gold loans, home loans and consumer durable financing, reflecting a broader premiumisation trend in retail credit.
Originations surge, but post-festive slowdown visible
Retail loan originations rose sharply, with total disbursement value increasing 42.2% YoY and 9.2% QoQ in Q4 FY26. However, momentum softened in vehicle finance after the festive season, with auto loans declining 11.6% QoQ and two-wheeler loans falling 22.1% QoQ.
Asset quality shows steady improvement
Portfolio stress indicators improved across most segments, with delinquency levels (PAR 31–180) declining in home loans, gold loans, personal loans and consumer durable loans. The improvement points to strengthening underwriting standards alongside expansion.
Shift toward secured lending strengthens
India’s retail credit market continued its structural shift toward secured and collateral-backed lending, led by gold loans and stable housing credit. This transition is contributing to improved portfolio resilience and lower risk levels across the system.
Urban-rural spread broadens
While home loans and credit cards remained concentrated in urban markets, personal loans, consumer durables and two-wheeler financing continued to expand into semi-urban and rural regions, reflecting deeper financial inclusion.
