India’s Retail Lending Market Hits ₹105.6 Lakh Cr, 10 Points

1. Retail Lending Sector Resilience

• India’s retail lending market in FY2026 shows sustained resilience and inclusive growth.

• Consumption-linked credit products are expanding steadily.

• Public Sector Banks (PSBs) are gaining momentum in secured loans, especially gold loans.

• Home loans remain the largest lending category, while two-wheeler and auto loans are witnessing stable growth.

• Unsecured credit (personal loans & credit cards) is moderating, with rising credit risk levels.

• Digital lending platforms are driving financial inclusion for new-to-credit borrowers and rural India.

2. Consumption Lending Overview

• Total portfolio: ₹105.6 lakh crore (June 2025), growing 14.5% YoY.

• Gold loans lead with 34.6% growth, followed by two-wheeler loans at 14.9%.

• Home loans up 12.8% YoY, now ₹41.2 lakh crore.

• Personal loans (8.7% growth) and credit cards (12.7% growth) show slower momentum.

• Clear shift towards asset-backed lending products.

3. Home Loans Market Trends

• Outstanding portfolio: ₹41.2 lakh crore, growing 12.8% YoY.

• PSBs’ market share surged from 37.6% to 46.2% in Q1 FY26.

• Average home loan ticket size increased from ₹30.4 lakh to ₹32 lakh.

• High-value loans (₹75 lakh+) now dominate, forming 38% of total origination value.

4. Personal Loans – Growth & Risks

• Market size: ₹14.9 lakh crore, up 8.7% YoY.

• Delinquency risk rising: PAR 360+ increased to 4.6%.

• NBFCs driving growth with 17.2% YoY increase in Q1 FY26.

• Average loan ticket size decreased by 2.8% to ₹58,522.

5. Gold Loans – India’s Fastest Growing Segment

• Portfolio: ₹13.4 lakh crore, up 34.6% YoY.

• Origination value surged 38.4% in Q1 FY26, driven by rising gold prices.

• PSBs lead with 51.9% share in origination value.

• Early delinquency rates improved, showing strong asset quality.

6. Auto Loans – Stability with Shifting Dynamics

• Market size: ₹8.3 lakh crore, up 14.5% YoY.

• Origination growth slowed to 3.3% YoY in Q1 FY26.

• PSBs’ share rose from 34.3% to 36.1%.

• Larger ticket loans (₹10L+) growing rapidly, reflecting demand for premium vehicles.

7. Credit Cards – Growth with Regulatory Pressure

• Total balances: ₹3.7 lakh crore, up 12.4% YoY.

• New issuances declined 28% YoY, signaling stress.

• Private banks dominate with 75.2% share.

• Delinquencies improving in early buckets, but long-term stress rising.

8. Two-Wheeler Loans – Slowdown in Origination

• Market size: ₹1.7 lakh crore, growing 14.9% YoY.

• Origination value grew only 1.0% YoY in Q1 FY26.

• NBFCs remain dominant lenders with 66.7% market share.

• Delinquencies rising in higher-ticket loans (₹75K+).

9. Consumer Durable Loans – Moderate Growth

• Market size: ₹0.8 lakh crore, up 7.9% YoY.

• Origination growth slowed to 5.1% YoY in Q1 FY26.

• NBFCs capture 85% share, driven by Buy Now Pay Later (BNPL) schemes.

• High delinquencies in low-ticket loans (<₹10K) raise risk concerns.

10. Key Takeaways – Retail Lending in India, FY2026

• Gold loans and home loans drive growth momentum.

• NBFCs & PSBs dominate lending in most categories.

• Digital credit adoption expanding in rural & semi-urban India.

• Delinquency risks rising in unsecured lending (personal loans, credit cards, consumer durables).

• Shift towards larger ticket sizes in housing, auto, and gold loans.