Summary of this article
Store credit accounts for 45.5 per cent first-time credit originations.
Gold loans have recorded the fastest growth among consumption loans.
Home loans have shifted towards higher-value property purchases.
Everyday Indian shoppers are opting for formal credit options to cover household expenses, upgrade appliances and manage unexpected family bills. Store checkout offers, gold collateral and credit cards are changing how families handle their monthly commitments.
According to the latest CRIF High Mark report, titled How India Lends: Credit Landscape In India (Q1 FY27), total retail borrowing across the nation has reached Rs 178.6 lakh crore. This total reflects a 19.2 per cent annual increase and a 4.7 per cent quarterly rise across all major loan categories.
Store Credit Leads Entry Into Formal Financial System
Financing at retail checkout counters is turning routine store visits into a direct step toward building a credit profile. Consumer durable loans are growing at 36.6 per cent annually and 21.4 per cent quarterly, as zero-cost monthly instalments assist shoppers in buying electronics and appliances.
For individuals without a prior debt history, store financing is accounting for 45.5 per cent of all first-time credit originations. Small-ticket appliance purchases are allowing shoppers to establish an official repayment record right at the checkout counter.
Two-wheeler loans are also bringing first-time buyers into the system, particularly in non-metro markets, which account for 53 per cent of total loan volume. Non-metro markets claim 43.5 per cent of consumer durable loans, while personal loans are recording a 13.8 per cent annual rise overall.
Gold Loans And Credit Cards
Gold loans are registering the steepest increase among consumption options, jumping 62.2 per cent year-on-year to Rs 21.7 lakh crore and 16.4 per cent quarter-on-quarter. Families are using household gold jewellery to secure fast cash, with public sector banks holding a 49.2 per cent share of this market.
At the same time, credit cards are providing revolving lines of credit for routine grocery shopping and monthly utility payments across urban centres.
Vehicle buyers have also added to total retail credit through auto loans, which expanded 18 per cent over the year. High-value car purchases above Rs 20 lakh have made up 18.2 per cent of all new auto loan approvals.
Home Loans Shift Towards Higher Values
Home loans make up a large share of total retail borrowing, although their portfolio share is declining. The share of home loans has dropped from 27.5 per cent in June 2025 to 25.5 per cent in June 2026.
At the same time, borrowers have shown a growing preference for high-value properties, with mortgages above Rs 75 lakh accounting for around 41 per cent of total new home loan approvals.
Repayment track records have shown improvement across most borrowing categories. Personal loan overdue rates between 31 and 90 days have dropped to 1.6 per cent, while auto loan stress has fallen to 0.9 per cent. Gold loan stress has also moved down from 2.3 per cent to 1.8 per cent.
Overall consumer durable loan delinquencies have stood at 0.9 per cent. However, financing amounts above Rs 50,000 have recorded higher overdue rates at 1.26 per cent. Affordable housing loans between Rs 5 lakh and Rs 35 lakh, on the other hand, have shown early stress at 2.80 per cent.
