Is India's Retail Credit Momentum Holding Strong Amid Increased Large-Ticket Loan Demand?
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Synopsis
India's retail credit remains robust in Q2 FY26, driven by secured lending and increased large-ticket loan demand. Insights reveal substantial growth in gold, home, and auto loans, showcasing a resilient credit ecosystem with significant contributions from public sector banks and NBFCs.
Key Takeaways
- Retail credit in India remains strong in Q2 FY26.
- Gold loans are the fastest-growing segment.
- Home and auto loans have rebounded significantly.
- Public sector banks and NBFCs are key players in this growth.
- Large-ticket loans are increasingly popular among consumers.
New Delhi, Nov 24 (NationPress) The retail credit landscape in India has shown remarkable resilience throughout the second quarter of the fiscal year 2026 (Q2 FY26). This stability is fueled by a notable shift towards secured lending, heightened demand for large-ticket loans, and greater involvement from public sector banks and non-banking financial companies (NBFCs), according to a report released on Monday.
The segment of gold loans has emerged as the fastest-growing category, while home and auto loans have experienced a significant rebound with the arrival of the festive season, as highlighted in the report from credit bureau CRIF High Mark.
Outstanding retail and consumption loans have surged by 18 percent year-on-year and 4.5 percent quarter-on-quarter, driven by gold loans (up 35.8 percent YoY, 8.6 percent QoQ), auto loans (up 16.3 percent YoY, 2.9 percent QoQ), and two-wheeler loans (up 15 percent YoY and 2 percent QoQ), according to the report.
Loans designated for sole proprietors have also continued to grow, increasing by 24.6 percent YoY to reach Rs 46.7 lakh crore, as per the findings.
The value of gold loan originations has skyrocketed by 53 percent YoY, with the average ticket size climbing to Rs 1.64 lakh, and the asset quality has improved across public sector undertaking (PSU) banks, private banks, and NBFCs.
Home loan originations have surged to Rs 3 lakh crore, reflecting a 25 percent QoQ increase, with loans exceeding Rs 75 lakh constituting 39.4 percent of total originations, while PSUs have bolstered their share to 50 percent, the report added.
The credit ecosystem continues to showcase resilience and discipline, and the quarterly findings reaffirm that India's retail credit cycle is firmly on a stable path, stated Sachin Seth, Chairman of CRIF High Mark and Regional Managing Director for CRIF India & South Asia.
Outstanding personal loans have risen by 12 percent YoY, aided by a robust recovery in originations to Rs 2.92 lakh crore.
Furthermore, large-ticket loans exceeding Rs 10 lakh have also expanded, making up 37.4 percent of the origination value.
Point of View
It's clear that India's retail credit sector is navigating through challenging economic conditions with remarkable stability. The continuous rise in demand for secured loans and large-ticket financing reflects consumer confidence and an adaptive banking ecosystem. Such resilience is essential for the country's economic growth, and it’s evident that both public and private financial institutions are committed to facilitating this progress.
NationPress
24/11/2025
Frequently Asked Questions
What is driving the growth in India's retail credit?
The growth in India's retail credit is primarily driven by a shift towards secured lending, increased demand for large-ticket loans, and significant participation from public sector banks and NBFCs.
Which category of loans is growing the fastest?
Gold loans have emerged as the fastest-growing category in India's retail credit landscape.
How much did home loan originations increase?
Home loan originations rebounded to Rs 3 lakh crore, marking a 25 percent quarter-on-quarter increase.
What percentage of originations do large-ticket loans represent?
Large-ticket loans above Rs 10 lakh accounted for 37.4 percent of the origination value.
What is the outlook for India's retail credit cycle?
The outlook for India's retail credit cycle remains stable, supported by a resilient credit ecosystem and disciplined lending practices.
