India's retail lending expands 16.6 pc led by gold loans growth: Report
New Delhi, May 20
India's retail lending portfolio expanded to Rs 170.2 lakh crore as of March 2026, marking 16.6 per cent year‑on‑year growth and a 4.6 per cent quarter‑on‑quarter increase, a report said on Wednesday.
The report from CRIF High Mark said consumption loans grew 15.3 per cent year‑on‑year to Rs 118.6 lakh crore, supported by broad‑based growth across gold loans, personal loans and consumer durable loans.
Gold loans emerged as the fastest-growing segment, with portfolio outstanding reaching Rs 18.6 lakh crore and growing 50.4 per cent YoY, supported by favourable market conditions and higher collateral values.
Personal loans grew 12.9 per cent YoY, and consumer durable loans 20.8 per cent YoY, while auto and two-wheeler loans grew 13.9 per cent-15.1 per cent YoY.
Portfolio growth outpaced active loan growth across categories, indicating rising ticket sizes and premiumisation trends.
The total retail loan originations value rose 42.2 per cent YoY and 9.2 per cent sequentially in Q4 FY26.
The report also highlighted continued premiumisation across products, improving asset quality, and a continued shift toward collateral-led and secured lending segments.
Q4 FY26 also saw moderation in post‑festive spending in categories like wheels, finance and consumer durables.
Retail credit growth is increasingly shifting toward secured lending, while penetration continues to expand into semi-urban and rural markets, the report noted.
Home loans maintained steady momentum, with portfolio outstanding at Rs 44.4 lakh crore, growing 9.4 per cent YoY and 3.4 per cent sequentially.
However, credit cards remained subdued, with balances flat YoY and negative QoQ.
This growth was accompanied by improvement in portfolio performance, with delinquency levels declining across most segments, reflecting strengthening asset quality alongside sustained expansion.
Gold loans led originations growth, while personal and consumer-durable loans posted over 30 per cent YoY growth. Housing loans maintained steady sequential growth, supported by rising ticket sizes.
Moreover, auto loans and two-wheeler loans moderated on a sequential basis post-festive demand.
— IANS
Reader Comments
Interesting how credit cards are flat while gold loans are booming. Shows the Indian mindset – we prefer to borrow against assets we already own rather than take unsecured debt. But 16.6% growth in retail lending overall makes me wonder about household debt levels. Are we living beyond our means? 🤔
Premiumisation is real! In cities like Bangalore and Mumbai, people are taking bigger home loans for fancier apartments. The ticket size is rising even if loan count isn't growing as fast. But the shift to semi-urban and rural markets is promising – finally credit is reaching beyond metros. 💪
Impressive delinquency decline! In a growth phase, maintaining asset quality is critical. But I worry about the gold loan frenzy – if gold prices correct sharply, many borrowers could be underwater. Still, the trend toward secured lending is prudent for Indian banks. Good read! 👍
Consumer durable loans up 20% and personal loans 12% – seems like Indians are finally comfortable financing lifestyle upgrades. But ye 'live now, pay later' culture could be risky. One economic shock and many families might struggle. Let's not repeat the microfinance crisis. 😕
Home loans at Rs 44.4 lakh crore is massive! But at 9.4% growth, it's slower than gold. Maybe because real estate prices are so high in cities that many are waiting? The silver lining is improving asset quality – at least defaults are coming down. Chaotic times, but managed well it seems. 🌟
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