Summary of this article
Bank credit grew 15.90 per cent in FY2025-26
Services, personal loans, agriculture, industry led demand
Total credit reached Rs 212.9 lakh crore in March
Scheduled commercial banks (SCBs) recorded a credit growth of 15.90 per cent in FY2025-26, according to the Finance Ministry. The data points to sustained demand for loans across sectors despite a challenging global environment.
The aggregate credit outstanding was Rs 212.9 lakh crore in March 2026, up by Rs 29.20 lakh crore as against the previous year. The ministry credited the growth to a mix of reduced interest rates, capital expenditure led by the government, and the improvement in the investment in the private sector.
It said these have enabled credit demand by both corporate and individual borrowers, which means the economy is still active.
Generalised Expansion in All Sectors
Credit expansion during the fiscal year was spread across key sectors. The services sector led the growth, followed by personal loans, agriculture and allied activities, and industry.
The services sector, which accounts for about 28 per cent of total credit, grew by 19 per cent year-on-year (y-o-y). This is higher than the 12 per cent growth recorded in the same period last year. Demand from non-banking financial companies (NBFCs), trade, and commercial real estate contributed to this increase.
Personal Loans Segment
The personal loans category, which accounts for 33 per cent of the overall credit market, grew by 16.20 per cent in FY2025-26. This segment performed better than the last financial year, where it grew by only 11.70 per cent.
In this segment, the housing loan category maintained stability, whereas the vehicle loan and loan against gold jewellery segments registered higher growth rates.
Agriculture And Industry Ready Themselves
Credit to agriculture and allied sectors grew by 15.70 per cent in FY2025-26, up from 10.40 per cent in the previous year.
Industrial credit also saw a stronger expansion, up by 15 per cent during the fiscal year, as against 8.20 per cent a year ago. The rise was mainly driven by increased lending to micro, small and medium enterprises (MSMEs).
Economic Context
The Finance Ministry said the domestic credit expansion has remained steady despite global uncertainties, including geopolitical tensions and economic fragmentation.
It said that continued government spending and structural measures have supported investment activity, helping sustain demand for credit across sectors.
FAQs
What were the key sectors that received loans in FY2025-26?
The highest loans were given to services, then personal loans, agriculture, and industry category.
What is the meaning of 15.90 per cent increase in credit?
This means that the banks have released more loans this year compared to the previous year, which shows more borrowings by households and other entities.
