India's Credit AUM Soars 17% as Gold & Home Loans Drive Growth

The report from data and technology company Experian said credit sourcing of new loans in Q3 FY26 grew 36 per cent YoY compared to 7 per cent a year earlier, driven by sustained demand from consumers and businesses, the report further said.

The report highlighted strong growth in lending activity, led by accelerated sourcing growth, rising secured lending, and improving asset quality.

Asset quality showed signs of improvement, where payments due for 30 days or more, declined from 3.9 per cent to 3.3 per cent YoY.

Secured loans including gold, home and vehicle loans recorded 42 per cent growth in Q3 FY26 against 20 per cent last year, with gold loans acting as the major driver, especially with small‑ticket borrowing below Rs 3 lakh, the report further said.

This shift reflects borrowers' preference for asset-backed borrowing as well as lenders' focus on secured credit.

Home loans and auto loans also recorded steady growth, supported by stable demand and improving affordability, it added.

Personal loans and consumer durable loans witnessed higher demand, supported in part by festive spending. However, credit card issuance slowed, suggesting more cautious borrowing and lending in this segment, the report noted.

"India's lending ecosystem is showing strong momentum, supported by steady demand, a growing preference for secured loans, and improving repayment behaviour. Products like gold loans and home loans are increasingly helping borrowers meet their financial needs in a more sustainable manner," said Manish Jain, Country Managing Director of Experian India.

Public sector banks strengthened their presence in home loans and auto loans, while Non-Banking Financial Companies remained strong in retail-focused segments such as consumer durable loans and two-wheeler loans, it noted.

- IANS