India’s retail credit market saw a sharp revival in fiscal year 2026, with lending growth accelerating across secured and unsecured products as gold loans emerged as the biggest driver of expansion, according to a report by Experian.
The report by the global information services company showed sourcing, or fresh loan disbursals, rose 31 per cent year-on-year in value terms to Rs 75 lakh crore in FY26, compared with a 5 per cent rise in FY25. Loan sourcing volumes increased 21 per cent to 46 crore accounts during the period.
The surge shows “improving credit demand and market momentum”, supported by stronger borrower confidence and higher ticket sizes across products, the report added.
Secured loans continued to dominate growth, accounting for 68 per cent of sourcing by value in FY26, up from 65 per cent a year earlier. Growth in secured lending by value stood at 35 per cent in FY26, outpacing the 22 per cent rise in unsecured loans.
Gold loans emerged as the standout segment, with sourcing value more than doubling in the March quarter of FY26. Gold loan sourcing reached Rs 7.6 lakh crore in FY26 Q4, marking a 115 per cent rise year-on-year, while assets under management climbed 47 per cent to Rs 11.9 lakh crore as of March 2026.
Average ticket sizes for gold loans also increased sharply to Rs 2.1 lakh in FY26 Q4 from Rs 1.4 lakh a year earlier, indicating rising borrower appetite for larger asset-backed loans.
“Gold loans have shown a more substantial increase in sourcing amounts compared to personal loans, reflecting a strong and growing preference for gold loans over the period,” the report said.
The report highlighted that gold loans consistently outperformed high-volume products such as personal loans and credit cards through FY26.
The overall retail lending portfolio stood at Rs 137 lakh crore as of March 2026, rising 19 per cent year-on-year. Home loans remained the largest component of the lending book with a 30 per cent share, followed by personal loans at 12 per cent and loans against property at 11 per cent.
Asset quality across the industry also improved during the year. Net 30-plus delinquency rates in the overall portfolio fell to 3.0 per cent from 3.5 per cent a year earlier, the report showed.
Personal loans, a key unsecured category, recorded a sourcing value of Rs 3.2 lakh crore in FY26 Q4, up 32 per cent year-on-year, while assets under management rose 15 per cent to Rs 16.1 lakh crore. Net 30-plus delinquency rates in personal loans declined to 2.5 per cent from 3.5 per cent.
Credit cards also showed improvement in portfolio quality, with delinquency rates falling to 3.2 per cent from 4.6 per cent, although sourcing growth remained modest at 5 per cent year-on-year in FY26 Q4.
Non-banking financial companies (NBFCs), especially fintech-led lenders, strengthened their presence in retail credit during the year. Experian said NBFCs emerged as “key growth drivers” in unsecured and consumption-led lending by leveraging faster onboarding and wider customer reach.
In gold loans, NBFCs increased their market share in sourcing value to 40 per cent in FY26 Q4 from 28 per cent a year earlier. In personal loans, NBFCs accounted for 39 per cent of sourcing value in FY26 Q4, up from 34 per cent in the corresponding quarter last year.
Public sector banks, meanwhile, retained a strong position in secured lending products such as home loans and auto loans, although their market shares declined sequentially in some categories during the March quarter.