India’s retail credit grew 19.2% YoY to ₹178.6 lakh crore by June 2026, led by consumer durable, gold, and auto loans.

India’s retail credit portfolio expanded 19.2% year-on-year and 4.7% quarter-on-quarter to ₹178.6 lakh crore as of June 2026, with consumer durable, sole-proprietor, auto and gold loans among the key segments supporting growth, according to CRIF High Mark’s How India Lends – Credit Landscape in India report.

Consumer durables, gold loans lead growth

Consumer durable loans recorded the fastest growth among major retail lending segments, rising 36.6% YoY and 21.4% QoQ in Q1 FY27. Sole-proprietor loans grew 24.4% YoY and 6.6% QoQ, while auto loans increased 18% YoY and 5.5% QoQ.

Gold loans continued to gain share within consumption lending. Their share of the portfolio rose to 12.1% in June 2026 from 8.9% a year earlier, while home loans accounted for 25.5% of consumption lending.

Gold loan originations, excluding priority sector gold loans, rose 47.3% YoY to ₹6.47 lakh crore in Q1 FY27 from ₹4.39 lakh crore in the year-ago quarter. The average ticket size increased 37.5% YoY to ₹2.17 lakh, although it declined 1.5% QoQ.

Personal loan portfolio outstanding increased 13.8% YoY and 3.1% QoQ, while home loans grew 10.5% YoY and 2.4% QoQ. Two-wheeler loans rose 12.4% YoY to ₹1.89 lakh crore, although quarterly growth remained flat.

Higher ticket sizes shape lending

The report also pointed to higher ticket sizes in several lending segments. Home loans above ₹75 lakh accounted for 41% of originations value in Q1 FY27, up from 36.8% in Q4 FY25. In auto loans, the ₹20 lakh-plus segment accounted for 18.2% of originations value.

Gold loans above ₹5 lakh represented around 40% of originations value despite accounting for 9.1% of total loans. In personal loans, those below ₹5 lakh increased to 50.7% of originations value.

Personal loan originations grew 34% YoY in Q1 FY27 to ₹3 lakh crore from ₹2.2 lakh crore in Q1 FY26, while QoQ growth moderated 6.1%. Consumer durable originations rose 32.1% QoQ.

Credit expands beyond top 100 cities

Credit penetration continued to increase beyond the Top 100 cities. Two-wheeler loans recorded 53% penetration, while consumer durable penetration rose to 43.5% in Q1 FY27 from 40.8% in Q1 FY26. Home loan penetration stood at 19.5%.

Consumer durable loans remained the largest entry point for new-to-credit borrowers, accounting for 45.5% of new-to-credit originations by volume, followed by gold loans at 18.3%.

Uttar Pradesh and Rajasthan emerged as key growth markets, while the southern states accounted for more than 70% of gold loan portfolio outstanding.

On asset quality, the report said pan-India delinquencies remained stable, although elevated PAR 31–90 in select low-ticket auto and personal loans, higher-ticket consumer durables and affordable housing remained areas to monitor.

About CRIF

Established in 1988 in Bologna (Italy), CRIF has a global presence, operating over four continents (Europe, America, Africa and Asia).

Today, CRIF is the leader in Italy for retail credit management and lending support solutions and, thanks to the expertise acquired over more than 30 years of activity in highly competitive markets, it is the leading group in continental Europe in the banking information sector and one of the main operators on an international level for integrated business and commercial information and credit and marketing management services.

For more information, visit https://www.crif.com.


Source: cnbctv18.com