Securitisation volumes hit record ₹1.47 lakh crore in H1 FY27, up 42%
Synopsis
India's securitisation market has posted its strongest-ever half-year, with volumes crossing ₹1.47 lakh crore in H1 FY27 — a 42% jump — powered by a 1.5x surge in gold loans and a vehicle loan comeback. ICRA now projects the full-year tally to hit at least ₹2.6–2.7 lakh crore, an all-time annual record, as NBFCs deepen their reliance on securitisation to fund growth.
Key Takeaways
India's securitisation volumes reached a record ₹1.47 lakh crore in H1 FY2026-27 , up 42% year-on-year.
Q2 FY27 alone accounted for ₹86,000 crore of the total, reflecting a sharp acceleration.
Gold loan securitisation volumes rose nearly 1.5 times year-on-year — the highest growth among all asset classes.
Vehicle loans recovered to account for one-third of overall H1 FY27 volumes, up from 25% in Q1 FY27.
ICRA projects full-year FY27 securitisation volumes at ₹2.6–2.7 lakh crore , which would be an all-time annual high.
Volumes were evenly split between the PTC and Direct Assignment routes, consistent with prior-quarter trends.
India's overall securitisation volumes surged to a historic high of ₹1.47 lakh crore in the first half of FY2026-27 (H1 FY27), marking a robust 42% year-on-year growth over the same period in FY2025-26, according to a report released on Monday, 13 October 2026. The milestone, highlighted in an ICRA report, underscores the growing reliance of non-banking financial companies (NBFCs) on securitisation as a core funding tool.
Q2 Drives the Momentum
Activity accelerated sharply in the second quarter, with securitisation volumes in Q2 FY27 alone reaching ₹86,000 crore. This pick-up was driven by a confluence of factors — a significant surge in gold loan securitisation, a comeback of vehicle loan pools, and steady demand for MSME and business loan assets.
Gold Loans Lead, Vehicle Loans Rebound
Gold loans registered the steepest climb, with H1 FY27 volumes rising nearly 1.5 times year-on-year — the highest growth rate among all asset classes. Vehicle loans, which had ceded ground in recent quarters, staged a recovery, accounting for one-third of overall volumes in H1 FY27, up from a 25% share in Q1 FY27. Several lenders either re-entered the market or scaled up their sell-down activity in the second quarter, boosting this segment.
Mortgage loans, small business loans, and microloans rounded out the key asset classes, each capturing between 12% and 15% of overall H1 FY27 securitisation volumes. The transaction structure remained balanced, with volumes evenly split between the Pass-Through Certificate (PTC) and Direct Assignment (DA) routes — consistent with the pattern observed in the previous quarter.
What the ICRA Report Said
Sachin Joglekar, Vice President and Co-Group Head, Structured Finance Ratings, ICRA, noted that traditional segments continued to hold their ground. 'Traditional segments such as vehicle, MSME or business loans and mortgage loans have maintained a steady pace of growth, supporting the overall volumes,' Joglekar said.
He added that the strong first-half performance reinforces ICRA's full-year projection. 'The strong volumes recorded in the first half lend support to ICRA's 2026-27 securitisation volume estimate of at least ₹2.6–2.7 lakh crore, marking an all-time high,' Joglekar said.
Why NBFCs Are Turning to Securitisation
From the originator's perspective, the report attributed the growth to NBFCs' continued dependence on securitisation to bridge funding gaps — a trend that has intensified as traditional bank credit lines face tighter regulatory scrutiny. This is the second consecutive half-year of double-digit volume growth, signalling a structural, not cyclical, shift in how India's non-bank lending sector finances itself.
Full-Year Outlook
With ₹1.47 lakh crore already recorded in H1, ICRA expects the full-year FY27 tally to cross ₹2.6–2.7 lakh crore, which would comfortably surpass any prior annual record. Industry watchers will closely track whether gold loan momentum sustains in H2 and whether regulatory developments around NBFC funding norms alter the securitisation calculus in the second half.
Point of View
Securitisation has become the pressure valve of choice, and gold loans are its newest accelerant. The risk is concentration: if gold prices correct sharply or regulatory sentiment toward gold-backed lending shifts, the pools underpinning this record could reprice quickly. ICRA's ₹2.7 lakh crore full-year projection assumes momentum holds in H2, but any regulatory tightening on NBFC origination standards in the second half could test that forecast considerably.
NationPress
12 Oct 2026
Frequently Asked Questions
What drove India's securitisation volumes to a record high in H1 FY27?
India's securitisation volumes hit a record ₹1.47 lakh crore in H1 FY27, driven by a near 1.5x surge in gold loan securitisation, a rebound in vehicle loans, and steady MSME and business loan pool activity. NBFCs' growing reliance on securitisation as a primary funding channel also underpinned the 42% year-on-year growth.
What is ICRA's full-year FY27 securitisation volume forecast?
ICRA projects total securitisation volumes for FY2026-27 at a minimum of ₹2.6–2.7 lakh crore, which would be an all-time annual record. The strong H1 performance of ₹1.47 lakh crore provides the base for this projection.
Which asset classes dominated securitisation in H1 FY27?
Gold loans recorded the highest growth, rising nearly 1.5 times year-on-year. Vehicle loans accounted for one-third of overall H1 volumes. Mortgage loans, small business loans, and microloans each contributed between 12% and 15% of total volumes.
What is the difference between PTC and Direct Assignment routes in securitisation?
Pass-Through Certificates (PTCs) are structured securities issued to investors backed by a pool of loans, while Direct Assignment involves the outright sale of a loan pool from originator to a buyer such as a bank. In H1 FY27, volumes were evenly split between both routes, continuing a trend from the prior quarter.
Why are NBFCs increasingly using securitisation for funding?
According to the ICRA report, NBFCs are turning to securitisation to meet funding requirements as traditional credit channels face tighter conditions. Securitisation allows originators to convert loan books into liquidity, diversifying their funding mix and reducing dependence on bank borrowings.
