India’s lending industry’s assets under management reached Rs 130 lakh crore by December 2025, marking a robust 17% year-on-year growth, according to a report by Experian. The report highlighted a 36% year-on-year increase in credit sourcing for new loans in Q3 FY26, driven by sustained demand from consumers and businesses. This growth was significantly higher compared to the 7% growth seen a year earlier.
The report also noted a surge in lending activity, particularly in secured lending, with improving asset quality. Secured loans, including gold, home, and vehicle loans, experienced a 42% growth in Q3 FY26, with gold loans being a major contributor, especially for small-ticket borrowing below Rs 3 lakh. This trend reflects a preference among borrowers for asset-backed loans and lenders’ focus on secured credit.
Furthermore, the report indicated positive developments in asset quality, with a decrease in payments overdue for 30 days or more from 3.9% to 3.3% year-on-year. Home loans and auto loans showed steady growth, supported by stable demand and enhanced affordability. Personal loans and consumer durable loans also saw increased demand, partly driven by festive spending. However, there was a slowdown in credit card issuance, signaling a more cautious approach to borrowing and lending in this segment.
Manish Jain, the Country Managing Director of Experian India, highlighted the momentum in India’s lending ecosystem, attributing it to steady demand, a growing inclination towards secured loans, and improved repayment behavior. Public sector banks expanded their presence in home loans and auto loans, while Non-Banking Financial Companies remained robust in retail-focused segments like consumer durable loans and two-wheeler loans.
