Summary of this article
Bank credit growth accelerated to 16.5 per cent in June.
Women’s borrowing grew faster, rising 19.7 per cent year-on-year.
Average lending rate eased to 9.26 per cent in June.
Bank credit growth accelerated to 16.50 per cent year-on-year (y-o-y) in June 2026, from 9.90 per cent in June 2025, according to data from the Reserve Bank of India’s (RBI) Quarterly Basic Statistical Return (BSR)-1 on Credit by Scheduled Commercial Banks.
Lending Rates Ease
The weighted average lending rate (WALR) on outstanding bank credit fell by 45 basis points (bps) to 9.26 per cent in June 2026 from 9.71 per cent a year earlier. WALR is the average rate of interest charged on loans that banks have already disbursed. It, however, does not mean that every borrower gets a loan at 9.26 per cent, since rates vary by loan type, lender and borrower profile.
The share of outstanding loans carrying a rate of interest below 9 per cent also rose to nearly two-thirds in June 2026 from 54.10 per cent a year earlier.
Women’s Borrowing Grows Faster
Credit to female individual borrowers grew 19.70 per cent in June 2026, compared to 12.90 per cent a year earlier. This was higher than the 16.50 per cent growth in total bank credit.
Credit to the household sector grew 15.20 per cent during the same period. The RBI separately tracks female individual borrowers. So, this measure should not be treated the same as personal loans.
Rural And Urban Credit See Faster Growth
Credit growth crossed 20 per cent in rural, semi-urban and urban centres, the report said.
Rural credit grew 21.10 per cent in June 2026, up from 12.80 per cent a year earlier. Semi-urban credit increased from 11.80 per cent to 21.60 per cent, while urban credit grew from 12.70 per cent to 21.40 per cent
Metropolitan centres recorded 13.10 per cent growth, compared to 8.20 per cent a year earlier.
Term And Working Capital Loans Pick Up
Term loans accounted for 64.10 per cent of total bank credit and grew 15.40 per cent in June 2026, compared to 8.30 per cent a year earlier.
Working capital loans grew 18 per cent, up from 13.40 per cent. These loans are used by businesses for basic daily needs, such as managing inventory, paying wages, or operating expenses.
Among sectors, credit to finance grew 22.40 per cent and trade credit grew 18.10 per cent. Industrial credit grew 15.50 per cent, agriculture 15.10 per cent and personal loans 12.70 per cent.
Overall, the June data shows faster credit expansion across borrower categories and locations, alongside a lower average lending rate on outstanding bank loans.
