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Key Points

India's credit market is experiencing remarkable resilience with a 21% year-on-year growth in Assets Under Management. The financial landscape is transforming through digital platforms and evolving consumer aspirations. Secured lending and small-ticket personal loans are driving this positive momentum. The report by Experian highlights a sophisticated and growing credit ecosystem in India.

Key Points: India Credit Demand Surges 21% in Experian Financial Report

  • Secured lending accounts for 32% of loan originations
  • Fresh disbursals reach Rs 16 lakh crore, up 10% YoY
  • Public sector banks increase home and gold loan market share
  • Unsecured lending portfolio grows 9% quarter-on-quarter
2 min read

India's credit demand remains resilient, total AUM stands at Rs 121 lakh crore

India's credit ecosystem shows robust growth with Rs 121 lakh crore AUM, driven by digital lending and consumer confidence

"India's credit ecosystem continues to evolve against the backdrop of digitalisation - Manish Jain, Experian India"

New Delhi, Aug 12

India's credit demand remains resilient, backed by rapid digitalisation, growing consumer aspirations and robust financial infrastructure, a report said on Tuesday.

As of March 2025, Industry Assets Under Management (AUM) stood at Rs 121 lakh crore, reflecting a 21 per cent year-on-year (YoY) increase and a 4 per cent quarter-on-quarter (QoQ) rise, Experian, a global data and technology company, said in its report.

Fresh disbursals during the quarter reached Rs 16 lakh crore, up 10 per cent YoY and 8 per cent QoQ, largely driven by continued growth in gold loans, business loans, and loans against property (LAP), the report stated.

"India's credit ecosystem continues to evolve against the backdrop of digitalisation, changing consumer aspirations, and a robust financial infrastructure," said Manish Jain, Country Managing Director of Experian in India.

Our latest Credit Insights underline the structural depth of this demand, especially in secured lending and small-ticket personal loans, pointing to both growing consumer confidence and responsible borrowing, he added.

The secured lending landscape witnessed a surge, with loans accounting for 32 per cent of originations by count in Q4 FY25.

According to the report, the segment also witnessed stable average ticket sizes at Rs. 1.7 lakh, indicating consistent borrower behaviour and healthy credit appetite.

Unsecured lending remained strong, with the portfolio growing 9 per cent QoQ, led by a 22 per cent QoQ rise in the business loan portfolio.

Personal loans continued to dominate the unsecured segment in both volume and value. Overall, both personal loans and gold loans are showing a shift towards higher ticket sizes, the report said.

Credit card disbursals, however, showed a declining trend in Q4 FY25, with a 2 per cent QoQ reduction in the credit card sourcing, the report highlighted.

Lender dynamics also shifted during the quarter.

Public sector banks (PSBs) increased their share in home and gold loans, while non-banking financial companies (NBFCs) strengthened their presence in the LAP and used car loan segments, the report noted.

NBFCs also expanded their footprint in unsecured lending, particularly in personal and consumer durable loans.

"As the landscape grows more complex, the need for timely, actionable insights becomes even more essential," Manish added.

- IANS

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Reader Comments

S
Shreya B
While the numbers look impressive, I'm concerned about the 9% QoQ growth in unsecured loans. Many middle-class families in my housing society are taking multiple personal loans to maintain lifestyle. RBI should monitor this closely.
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Aman W
Digital lending platforms have made credit so accessible now! Got my small business loan approved in 2 hours last month. But banks need to educate first-time borrowers better about interest calculations and repayment terms.
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Priyanka N
The shift to higher ticket sizes in gold loans shows how traditional assets are helping fuel modern aspirations. My jeweler uncle says 60% of his customers now take loans against gold for education rather than weddings!
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David E
Interesting to see PSBs gaining share in home loans while NBFCs dominate LAP. As an expat investing in Indian real estate, I find NBFCs more flexible but PSBs offer better rates for long-term commitments. Good to have options!
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Kavitha C
The 2% decline in credit cards is surprising given the UPI boom. Maybe people are realizing cards lead to impulsive spends? I switched to UPI and saved ₹15k last quarter by avoiding unnecessary purchases.

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