Mumbai, February 24: India’s outstanding retail loans expanded sharply by 18.1 per cent year on year in the December quarter of FY26, reaching ₹162 lakh crore, driven primarily by a surge in gold-backed lending, festive season demand, and the impact of GST rationalization, according to data released by CRIF High Mark.
The data highlights a broad-based rise across key retail loan segments, with gold loans emerging as the fastest-growing category during the quarter.
Gold Loans Jump 44.1%, Outpacing Other Segments
Loans secured against gold recorded a robust 44.1 per cent increase to ₹16.2 lakh crore, reflecting higher borrowing activity amid rising gold prices. The sharp rise in gold-backed lending played a central role in lifting overall retail credit growth during the quarter.Personal loans also maintained steady momentum, with outstanding amounts rising 11.6 per cent to ₹15.9 lakh crore.
Home Loans Remain Largest Contributor
The home loan segment continued to dominate retail lending, with outstanding loans rising 10.5 per cent to ₹43 lakh crore in the December quarter.Data further showed that the number of active home loans increased by 3.3 lakh during the period, indicating a rise in average ticket sizes.
At the regional level, Delhi recorded the slowest growth in home loan outstanding at 7.7 per cent. In contrast, Telangana, Karnataka, Uttar Pradesh, and Rajasthan reported growth rates higher than the overall market average.
GST Rationalization Boosts Auto and Consumer Finance
The report noted that GST rationalization supported demand in vehicle and consumer lending segments.Auto loans rose 14.6 per cent year on year, while two-wheeler loans increased 12.3 per cent. Consumer durable loans also saw a 14.3 per cent expansion, reflecting improved credit uptake in discretionary spending categories.
Sole Proprietorship Loans Rise 26.2%
Outstanding loans availed by sole proprietorship entities surged 26.2 per cent during the December quarter, indicating rising credit penetration among small business operators.Asset Quality Improves Across Retail Portfolio
From an asset quality perspective, retail loan performance showed improvement. The share of outstanding retail loans overdue between 30 and 180 days declined to 2.8 per cent as of December, compared with 3.2 per cent in the previous year.The data indicated that most retail sub-segments recorded better delinquency trends during the period.
State-Owned Banks Lead Originations in Q3 FY26
According to the credit information company, a dozen state-owned lenders accelerated their lending operations in Q3 FY26 and together accounted for more than half of total retail loan originations during the quarter.The overall data signals sustained retail credit expansion in FY26, supported by gold-backed borrowing, housing demand, and improved asset quality metrics.
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