India’s credit sector has posted impressive growth, with assets under management (AUM) climbing 17% year-on-year to reach ₹130 lakh crore by December 2025. This robust expansion was highlighted in a comprehensive report released on Thursday, underscoring the sector’s resilience amid evolving economic dynamics.
The report from data and technology firm Experian revealed a sharp acceleration in new loan credit sourcing during the third quarter of fiscal year 2026, surging 36% compared to the previous year—a stark contrast to the modest 7% growth seen a year earlier. This surge is attributed to sustained demand from both consumers and businesses, fueling a broader uptick in lending activities.
Key drivers include rapid growth in loan sourcing, a shift towards secured loans, and notable improvements in asset quality. Delinquency rates for payments overdue by 30 days or more dropped from 3.9% to 3.3% of total dues on an annual basis, signaling stronger repayment discipline across the board.
Secured loans, encompassing gold, home, and vehicle financing, witnessed a remarkable 42% increase, up from 20% last year. Gold loans, particularly those under ₹3 lakh, emerged as the standout performer, reflecting borrowers’ preference for asset-backed financing and lenders’ strategic focus on lower-risk products.
Home and vehicle loans also maintained steady growth, bolstered by stable demand and rising affordability. Meanwhile, festive season spending spurred demand for personal loans and consumer durables financing. However, credit card issuances slowed, indicating heightened caution in unsecured lending.
Manish Jain, Country Managing Director at Experian India, commented, ‘India’s credit ecosystem is gaining strong momentum driven by steady demand, growing preference for secured loans, and improved repayment behaviors. Products like gold and home loans are enabling borrowers to meet financial needs more sustainably.’
Public sector banks have solidified their presence in home and auto loans, while non-banking financial companies (NBFCs) dominate retail segments such as consumer durables and two-wheeler financing. This diversification points to a maturing credit market poised for sustained expansion.