Retail Credit Surges 19 Per Cent In A Year, Gold Loans Continue To Drive Growth: Report

The total asset management (AUM) under retail credit hit a staggering Rs 137 lakh crore as of March 2026, marking a 19 per cent year-on-year increase. According to the latest data released by Experian, a global data and technology company, the new loans surged by 31 per cent and reached Rs 75 lakh crore in FY 2026.

The report highlights a credit environment that is driven by strong demand and improved underwriting.

Gold loans, primarily, led the growth in retail credit, contributing a 47 per cent increase YoY in their AUM to Rs 11.9 lakh crore in FY26. Home loans AUM grew at a steady 12 per cent YoY, reaching Rs 43 lakh crore. This indicates borrowers’ preference for collateral-backed products that typically offer easier and faster loan processing and simplified underwriting.

According to the report, secured lending remains dominant with gold loans and home loans; however, unsecured lending has also recorded a comeback after facing a contraction in FY2025.

Personal loans and consumer loans have rebounded, backed by rising consumer confidence and deeper digital penetration in smaller cities (Tier 2, Tier 3, and Tier 4). According to the data, the personal loan AUM rose to Rs 16.1 lakh crore, a 15 per cent increase compared to the previous year. Even the small-ticket segments like consumer durables saw their AUM grow by 28 per cent.

This rapid expansion is not coming at the expense of stability, notes the report, and asset quality has strengthened significantly across the industry. The asset quality has improved, with the delayed payment rate (next 30-plus days delinquency rate) easing to around 3.0 per cent as of March 2026.

The non-banking financial companies (NBFCs) and fintechs are driving the unsecured loan segment, using digital modes for faster customer reach. In the consumer durable space, NBFCs now have an 86 per cent market share of sourcing value, reveals the report.

On the other hand, the public sector banks continue to maintain their lead in the secured loan segment, such as housing and priority-sector lending.

Manish Jain, Country Managing Director, Experian India, notes that the ecosystem is benefiting from sustained momentum, supported by digital innovation and a wider distribution network.

Here is a summary of the YoY growth in AUM in different loan segments:

Unsecured Loans

• Personal Loan AUM stood at Rs16.1 lakh crore as of March 2026, up 15 per cent

• Credit Cards AUM at Rs 3.4 lakh crore with a 2 per cent growth

• Consumer Durable loans AUM stood at Rs 1.0 lakh crore as of March 2026, up 28 per cent
  

Secured Loans

• Gold Loans AUM rose by 47 per cent YoY to Rs 11.9 lakh crore as of March 2026

• Two-wheeler loans AUM at Rs 1.8 lakh crore as of March 2026, with 17 per cent growth

• Home Loans AUM stood at Rs 43 lakh crores as of March 2026, up 12 per cent

• Auto Loans AUM at Rs 9.2 lakh crore as of March 2026, up 15 per cent

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