India’s Credit Industry Maintains Strong Growth Momentum as Asset Quality Improves: Experian Insights

Mumbai, Feb 26, 2026: As of December 2025, total industry Assets Under Management (AUM) stood at Rs.130 lakh crore, reflecting a 17% YoY growth compared to 23% in the last year.  Credit sourcing of new loans stood at Rs.20 lakh crore in Q3 FY26, marking a robust 36% YoY growth against 7% growth last year, indicating sustained demand from both consumers and businesses.

Highlights:

• Credit industry AUM reaches Rs. 130 lakh crores as of Dec’25, up 17% YoY
• New loans issued during Q3 FY26 reached Rs. 20 lakh crores, up by 36% year-on-year (YoY)
• Share of secured loans in new sourcing increased to 34% in Q3 FY26 from 30% a year ago, driven by strong gold and home loan demand
• Asset quality improves, with net 30+ delinquency declining to 3.3%

A key trend that emerges is the rising share of secured loans, including gold loans, home loans, vehicle loans, which recorded 42% YoY growth in Q3 FY26 against 20% growth in the last year. This shift reflects borrowers’ preference for asset-backed borrowing as well as lenders’ focus on secured credit. Gold loans continued to be a major growth driver, benefiting from rising gold prices and their suitability for small-ticket borrowing (loans below Rs.3 lakh). Home loans and auto loans also recorded steady growth, supported by stable demand and improving affordability.

Unsecured loans including personal loans and consumer durable loans have continued to gain momentum in new sourcing. Personal loans and consumer durable loans witnessed higher demand, supported in part by festive spending. However, credit card issuance slowed, suggesting more cautious borrowing and lending in this segment. Overall, the quality of new sourcing has improved, suggesting positive growth trends in the coming quarters. 

Importantly, asset quality showed signs of improvement, with net 30+ delinquency declining from 3.9% to 3.3% YoY, indicating healthier repayment behaviour across portfolios.

Lender dynamics continue to evolve. Public sector banks strengthened their presence in home loans and auto loans, while NBFCs (Non-Banking Financial Companies) remained dominant in retail-focused segments such as consumer durable loans and two-wheeler loans, which typically cater to first-time and mass-market borrowers.

Commenting on the insights, Manish Jain, Country Managing Director of Experian India, said “India’s lending ecosystem is showing strong momentum, supported by steady demand, a growing preference for secured loans, and improving repayment behaviour. Products like gold loans and home loans are increasingly helping borrowers meet their financial needs in a more sustainable manner.”

“At the same time, we are seeing a healthy balance between growth and risk management. Better credit assessment and responsible lending are playing an important role in improving overall portfolio quality. Timely data and insights remain critical in supporting this progress.” he added.

Key Highlights:

1. Personal Loans: steady growth with improving delinquency trends

• AUM reached Rs.15.4 lakh crore, up by 11% YoY
• NBFCs expanded their presence, particularly in smaller loan amounts (below Rs.3 lakh)
• Early signs of stabilisation in delinquency trends are observed

2. Credit Cards: rising spend limits amid declining issuances

• AUM stood at Rs.3.4 lakh crore, showing a 4% YoY decline
• Issuance declined, while average credit limits increased
• Delinquencies showed marginal improvement from last year

3. Consumer Durable & Two-Wheeler Loans: healthy uptick driven by seasonal consumer spending

• Consumer durable loans grew 18% YoY, supported by seasonal demand
• Two-wheeler loan AUM reached Rs.1.8 lakh crore, with NBFCs continuing to dominate sourcing

4. Gold Loans: exceptional growth driven by strong consumer demand

• AUM rose sharply to Rs.10.6 lakh crore, registering 48% YoY growth
• Strong demand for small-ticket loans (typically below ₹3 lakh)
• Net delinquencies remained among the lowest across products

5. Home Loans: steady growth backed by healthy credit discipline

• AUM reached Rs. 41 lakh crores as of Dec’25, growing 11% YoY
• Public sector banks continued to gain market share
• Portfolio quality improved with stable delinquency levels

6. Auto Loans: healthy expansion with strong participation from banks

• Portfolio stood at Rs.8.8 lakh crore, up by 15% YoY
• Public sector banks gained share in new vehicle loans
• Asset quality improved on a YoY basis

Summary:

India’s lending ecosystem continues to show resilience and balanced growth, according to the latest report by Experian India. Total industry AUM touched ₹130 lakh crore in December 2025, marking 17% YoY growth. Secured loans led expansion with 42% YoY growth, driven largely by gold loans (48% growth). Asset quality improved as net 30+ delinquency declined to 3.3%. Public sector banks gained ground in home and auto loans, while NBFCs remained strong in retail-focused segments.

The Experian Industry Insights Report offers lenders a comprehensive view of credit trends, borrower behaviour, and portfolio health across products and borrower segments. Leveraging advanced analytics and deep data expertise, Experian continues to support the financial ecosystem with actionable intelligence to enable informed, responsible, and sustainable credit growth.

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