India’s retail lending market expanded strongly in the fourth quarter of FY26, driven by surging gold loans, steady home loan growth, rising ticket sizes and improving asset quality, according to a report released by CRIF High Mark.
The company said India’s retail lending portfolio reached Rs 170.2 lakh crore as of March 2026, marking a 16.6 per cent year-on-year increase and a 4.6 per cent quarter-on-quarter rise.
Consumption loans grew 15.3 per cent year-on-year to Rs 118.6 lakh crore, supported by broad-based growth across gold loans, personal loans and consumer durable loans. Home loans maintained steady momentum, with outstanding portfolios at Rs 44.4 lakh crore, growing 9.4 per cent year-on-year and 3.4 per cent quarter-on-quarter. Credit card balances, however, remained flat year-on-year and declined sequentially.
The report highlighted that portfolio growth continued to outpace growth in active loan volumes, indicating a structural shift towards higher ticket sizes across retail lending products.
Gold loans emerged as the fastest-growing segment in FY26. Outstanding portfolios in gold loans rose 50.4 per cent year-on-year to Rs 18.6 lakh crore, supported by favourable market conditions, higher collateral values and strong consumer demand. The segment also recorded improving asset quality, reinforcing its role as a key driver of retail credit expansion.
Across categories, premiumisation trends became more visible. Average ticket sizes increased not only in gold loans but also in home loans and consumer durable loans, contributing to faster portfolio growth compared with loan volumes.
The report noted that total retail loan originations value rose 42.2 per cent year-on-year and 9.2 per cent quarter-on-quarter in Q4 FY26. Gold loans led this growth, while personal loans and consumer durable loans recorded over 30 per cent year-on-year growth in originations. Housing loans showed steady sequential growth, supported by rising ticket sizes.
However, the quarter also reflected the impact of seasonal moderation following the festive period. Auto loans declined 11.6 per cent quarter-on-quarter, while two-wheeler loans fell 22.1 per cent quarter-on-quarter. Consumer durable loans also witnessed moderation after the festive-driven demand.
Vehicle loans still posted healthy year-on-year growth, with auto and two-wheeler loans rising between 13.9 per cent and 15.1 per cent, but the sequential slowdown indicated cooling demand after earlier festive spending.
A key theme in the report was improving portfolio performance. Delinquency levels, measured by PAR 31–180, declined across most segments including home loans, gold loans, personal loans and consumer durable loans. This improvement in asset quality accompanied the sustained expansion in lending, signalling stronger portfolio resilience.
The retail credit market also showed a clear shift towards secured and collateral-backed lending. Gold loans and housing finance led this transition, with secured segments exhibiting lower delinquency levels compared with unsecured categories.
Geographic diversification of lending activity continued during the quarter. Personal loans, consumer durable loans and two-wheeler loans showed stronger penetration in semi-urban and rural markets, while home loans and credit cards remained concentrated in urban centres.
According to CRIF High Mark, the combined effect of premiumisation, rising collateral-backed lending and improved asset quality indicates a structural evolution in India’s retail lending ecosystem.
The report added that seasonal factors following the festive period influenced quarter-on-quarter trends, particularly in wheels finance and consumer durable categories, but the broader trajectory of retail credit remained robust.