Summary of this article
Auto loan originations declined to Rs 1.05 lakh crore
Two-wheeler loan originations dropped 22 per cent in Q4FY26
Gold loan portfolio surged 50.4 per cent during FY26
Auto and two-wheeler loan originations by value declined sharply in the January-March quarter (Q4) of FY26 after strong growth in the preceding festive quarter, according to a report released by CRIF High Mark on Wednesday.
Auto loan originations fell 11.6 per cent sequentially to Rs 1.05 lakh crore during the March quarter. Two-wheeler loan originations saw a steeper decline of 22 per cent to Rs 29,800 crore during the same period.
The decline came after higher demand in the December quarter, which had benefited from festive spending and the impact of GST rationalisation on the automobile sector.
Despite the fall in fresh originations during the quarter, the outstanding auto loan portfolio continued to expand. Auto loans grew 3.4 per cent in Q4FY26 compared to the previous quarter, while the two-wheeler loan portfolio rose 2.7 per cent sequentially.
Retail Loan Growth Remains Strong
The report showed that the overall retail loan portfolio in the system grew 16.6 per cent year-on-year to Rs 170 lakh crore in FY26. At the same time, stress in retail loans declined during the fiscal year. Loans unpaid for between 31 and 180 days accounted for 2.7 per cent of retail advances as of March 31, 2026, compared to 3.1 per cent a year earlier.
The data indicated an improvement in repayment trends across major retail lending segments even as credit growth remained healthy.
Home loan growth, however, remained relatively moderate during FY26. The total home loan portfolio expanded by less than 10 per cent during the fiscal year.
Gold Loans See Sharp Increase
Gold loans continued to record strong growth during FY26 as rising gold prices and higher lender confidence supported demand.
According to the report, the gold loan portfolio grew 50.4 per cent during the fiscal year, making it one of the fastest-growing retail loan categories.
The rise in gold prices has driven borrowers to pledge jewellery for larger loan amounts, while lenders also expanded lending against the precious metal. The report also pointed to improving asset quality in the gold loan segment despite concerns around price fluctuations after the escalation of the West Asia conflict.
Loans unpaid for 31 to 180 days in the gold loan category declined to 1.2 per cent in March 2026, from 2 per cent in the year-ago period. The improvement translated to the fact that repayment performance in gold loans remained stable even amid volatility in gold prices during parts of the fiscal year.
FAQs
Why did auto loan originations decline in Q4FY26?
Auto loan originations declined after festive season demand eased following strong growth in Q3FY26.How much did gold loans grow in FY26?
Gold loan portfolios increased 50.4 per cent during FY26, driven by rising gold prices.What happened to two-wheeler loan originations in Q4FY26?
Two-wheeler loan originations fell 22 per cent to Rs 29,800 crore in the March quarter.
