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Retail Lending Soars 18% in Q3; Gold & Auto Loans Lead Surge

India's retail lending portfolio expanded significantly to Rs 162.7 lakh crore in the third quarter of FY26, marking an 18.1% year-on-year growth. The asset quality improved as the Portfolio at Risk for overdue repayments declined. Quarterly loan originations surged by 41%, driven by a massive 90.3% jump in gold loans and strong growth in auto and two-wheeler segments. The report also highlighted a trend of premiumisation in loan categories and continued credit penetration into non-metro cities.

Key Points: India's Retail Lending Grows 18%, Asset Quality Improves

  • Retail portfolio grows 18% YoY
  • Asset quality improves with PAR decline
  • Gold loan originations jump 90.3%
  • Premiumisation trend in home & gold loans
2 min read

India's retail lending portfolio grows 18 pc in Q3; asset quality improves

India's retail loan portfolio hits Rs 162.7 lakh crore in Q3 FY26, with originations up 41% and improved asset quality. Gold loans surge 90%.

"Portfolio at Risk (PAR) with repayments overdue by 31 to 180 days declined to 3.1 per cent from 3.6 per cent - CRIF High Mark Report"

New Delhi, Feb 24

India's retail lending portfolio grew to Rs 162.7 lakh crore in Q3 FY26, up 18.1 per cent year‑on‑year, with 690 million active loan accounts and improved asset quality, a report said on Tuesday.

The report from Credit bureau CRIF High Mark said Portfolio at Risk (PAR) with repayments overdue by 31 to 180 days declined to 3.1 per cent from 3.6 per cent a year earlier. Quarterly originations rose 41 per cent YoY to Rs 25.3 lakh crore, the report said.

Gold loan originations jumped 90.3 per cent YoY driven by the gold price rally. GST rate rationalisation triggered a 46.7 per cent quarter‑on‑quarter surge in two‑wheeler originations and 22.1 per cent QoQ growth in auto loans, while festive demand boosted consumer durables by 14.7 per cent sequentially, the report further said.

The report also highlighted premiumisation across categories, with home loan average ticket size up 6.4 per cent QoQ to Rs 33 lakh and loans above Rs 75 lakh accounting for 40 per cent of originations versus 35 per cent in the previous year.

A similar premiumisation trend was visible in gold loans, where loans above Rs 5 lakh contributed 36.5 per cent of total value, up from 24 per cent in Q3 FY25, the report said.

NBFCs strengthened their position in high-velocity segments, accounting for 30.7 per cent of gold loan origination value in Q3 FY26 and 91.1 per cent of personal loan volumes, the report further said.

PSU banks continued to expand their strategic presence in secured lending and private banks in home loan originations value. PSU banks accounted for 50.3 per cent of originations versus 23.3 per cent share of private banks. PSU banks also maintained a strong presence in gold loan originations value (45.8 per cent), supported by enhanced digital capabilities and competitive pricing, the firm said.

Growth in non metro cities continued to gain traction, particularly in mass-market products such as personal loans, two-wheelers, and consumer durables, indicating deeper penetration into semi-urban and rural geographies.

This trend reflects expanding access to formal credit and increasing borrower participation outside metropolitan centres, the report noted.

- IANS

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Reader Comments

R
Rohit P
Gold loans up 90%! Not surprising with the way gold prices are shooting up. It's become the go-to emergency fund for many middle-class families. But I hope people are being careful and not over-leveraging their family jewellery.
A
Aman W
The 'premiumisation' trend is interesting but also worrying. Home loan average ticket size Rs 33 lakh? Loans above 75 lakh are 40% of originations? This suggests credit is flowing more to the already affluent, while the common man might still be struggling for smaller, essential loans.
S
Sarah B
Good to see PSU banks holding their own with over 50% share in originations. Their digital push seems to be paying off. Competitive pricing from them is always a win for consumers against private banks.
K
Karthik V
The jump in two-wheeler loans after GST rationalisation shows how sensitive the market is to government policy. A good move that directly boosts a key sector. More such rationalisation needed in other areas too!
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Nidhi U
While the growth numbers look impressive, we must ensure this lending boom doesn't lead to a debt trap for households. Financial literacy is key, especially with NBFCs dominating the personal loan space (91%!). Easy credit is a double-edged sword.

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