India's credit market AUM hits ₹142 lakh crore, up 18% YoY in Q1 FY27
Synopsis
India's total credit AUM hit ₹142 lakh crore in June 2026, growing 18% in a year — and the real story is what's driving it: unsecured lending surging 26%, consumer durables up 37%, and delinquency rates actually falling. The numbers suggest a credit market expanding fast without losing discipline, at least for now.
Key Takeaways
India's credit market AUM reached ₹142 lakh crore in June 2026 , up 18 per cent YoY, per Experian .
Total loan sourcing value rose 18 per cent YoY to ₹20 lakh crore in Q1 FY27, though it moderated from Q4 FY26.
Unsecured sourcing volumes grew 26 per cent YoY, led by personal loans and consumer durable loans .
Net 30+ delinquency improved to 3 per cent in June 2026 from 4.1 per cent in June 2025.
Home loan AUM stood at ₹43.6 lakh crore , up 13% YoY; average ticket size rose to ₹34.8 lakh .
Consumer durable loan AUM was the fastest-growing product, up 37 per cent YoY to ₹1.1 lakh crore .
India's credit market maintained its strong growth trajectory in Q1 FY27, with total assets under management (AUM) reaching ₹142 lakh crore as of June 2026 — an 18 per cent year-on-year rise, according to a report by Experian released on 8 October 2026. Total loan sourcing value also climbed 18 per cent YoY to ₹20 lakh crore in the quarter, though it moderated from the pace seen in Q4 FY26.
Unsecured Lending Drives Growth
Unsecured sourcing volumes emerged as a key growth engine, expanding 26 per cent YoY in Q1 FY27. Personal loans and consumer loans contributed significantly to this surge, while credit cards showed a renewed uptick after a period of moderation. This reflects an evolving consumer credit appetite, particularly among borrowers accessing consumption-led financial products for the first time.
Non-Banking Financial Companies (NBFCs) continued to deepen their footprint in this segment, particularly in personal loans, consumer durable loans, and two-wheeler loans. Banks, meanwhile, retained dominance in larger-ticket secured categories such as home loans and auto loans.
Asset Quality Improves Year-on-Year
Despite the rapid credit expansion, asset quality held firm across the industry. Net 30+ delinquency stood at 3 per cent in June 2026, a notable improvement from 4.1 per cent in June 2025. This suggests lenders have managed portfolio risk even as unsecured disbursements accelerated — a combination that has historically been difficult to sustain.
Product-Level Breakdown
Personal loan AUM stood at ₹16.2 lakh crore, up 14 per cent YoY, with new sourcing jumping 32 per cent to ₹3 lakh crore. Consumer durable loan AUM rose a sharp 37 per cent YoY to ₹1.1 lakh crore, while two-wheeler loan AUM stood at ₹1.8 lakh crore.
Home loan AUM — the single largest product category — reached ₹43.6 lakh crore, up 13 per cent YoY, with the average ticket size rising to ₹34.8 lakh from ₹32.2 lakh a year ago, pointing to sustained demand in the mid-to-premium housing segment. Credit card AUM edged down 0.1 per cent YoY to ₹3.15 lakh crore, though new sourcing is showing renewed traction.
Industry Outlook
'India's credit market continues to demonstrate resilience with sustained portfolio growth and good asset quality providing a strong foundation for the next phase of expansion. The momentum in unsecured lending reflects the evolving credit needs of consumers, while the continued strength of secured portfolios points to a balanced market,' said Manish Jain, Country Managing Director, Experian India.
This comes amid broader macroeconomic stability and rising formal credit penetration across tier-2 and tier-3 cities. If delinquency rates continue to fall while disbursement growth holds, India's credit market could be on track for another record year of AUM expansion.
Point of View
But the more telling signal is the simultaneous drop in delinquency — from 4.1 per cent to 3 per cent — even as unsecured lending surged 26 per cent. That combination is unusual and warrants scrutiny: either underwriting has materially improved, or the stress is still inside the seasoning window and will surface later. The 37 per cent jump in consumer durable loans points to a consumer borrowing more for discretionary purchases, which is a positive demand signal but also a vulnerability if income growth softens. The real test for this credit cycle will come in Q3 and Q4 FY27, when the newer vintages of unsecured loans season and delinquency trends either hold or reverse.
NationPress
8 Oct 2026
Frequently Asked Questions
What is India's total credit market AUM as of June 2026?
India's total credit market AUM stood at ₹142 lakh crore as of June 2026, reflecting an 18 per cent year-on-year increase, according to a report by Experian. Total loan sourcing value also rose 18 per cent YoY to ₹20 lakh crore in Q1 FY27.
Which segment drove credit growth in Q1 FY27?
Unsecured lending was the primary growth driver, with sourcing volumes rising 26 per cent YoY in Q1 FY27. Personal loans, consumer durable loans, and two-wheeler loans — largely driven by NBFCs — contributed significantly to this expansion.
How did asset quality perform in India's credit market in June 2026?
Asset quality improved notably, with Net 30+ delinquency falling to 3 per cent in June 2026 from 4.1 per cent in June 2025. This suggests portfolio risk remained contained even as disbursements accelerated.
What is the current home loan AUM and average ticket size in India?
Home loan AUM reached ₹43.6 lakh crore in June 2026, up 13 per cent YoY. The average ticket size rose to ₹34.8 lakh from ₹32.2 lakh a year earlier, reflecting rising property values and demand in the mid-to-premium housing segment.
How are NBFCs and banks positioned differently in India's credit market?
NBFCs have strengthened their presence in consumption-led products such as personal loans, consumer durable loans, and two-wheeler loans. Banks continue to dominate larger-ticket secured categories like home loans and auto loans, according to the Experian report.
