New Delhi, Nov 24 (LatestNewsX) – India’s retail‑credit market kept its pace into the second quarter of FY 2026, thanks to a continued preference for secured loans, growing appetite for high‑value credit and stronger participation from public‑sector banks and NBFCs, the report announced Monday.
Gold‑backed loans led the surge, while home‑ and auto‑loans quickly picked up momentum with the arrival of the festive season, the credit‑bureau data indicated.
Retail and consumption borrowing rose 18 % year‑over‑year and 4.5 % quarter‑on‑quarter, with gold loans up 35.8 % and 8.6 % YoY/QoQ, auto loans up 16.3 % and 2.9 %, and two‑wheeler loans up 15 % and 2 %. Sole‑proprietor lending grew 24.6 % YoY, reaching Rs 46.7 lakh crore.
The value of gold‑loan originations jumped 53 % YoY, and the average loan size climbed to Rs 1.64 lakh. Asset quality also improved across public sector, private sector, and NBFC lenders.
Home‑loan originations rebounded to Rs 3 lakh crore, a 25 % quarterly increase, with 39.4 % of new loans above Rs 75 lakh. Public‑sector banks now account for 50 % of the market share, the report added.
“Credit remains resilient and disciplined,” said Sachin Seth, Chairman of CRIF High Mark and regional managing director for India & South Asia. “The quarterly results confirm that India’s retail‑credit cycle is steady.”
Personal‑loan balances rose 12 % YoY, backed by a robust lift in new lending to Rs 2.92 lakh crore. Loans over Rs 10 lakh also grew, making up 37.4 % of total origination value.
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