India’s retail lending portfolio reached Rs 162.7 lakh crore in Q3 FY26, marking an 18.1% year-on-year increase, as per a report by Credit bureau CRIF High Mark. The report highlighted improved asset quality, with 690 million active loan accounts. Portfolio at Risk (PAR) decreased to 3.1% from 3.6% a year earlier, and quarterly originations surged by 41% year-on-year to Rs 25.3 lakh crore.
Gold loan originations saw a significant 90.3% year-on-year rise, driven by the rally in gold prices. The report attributed a 46.7% quarter-on-quarter increase in two-wheeler originations and a 22.1% QoQ growth in auto loans to GST rate rationalization. Additionally, consumer durables experienced a 14.7% sequential growth due to festive demand.
The report also noted a trend of premiumization across categories, with the average ticket size for home loans increasing by 6.4% QoQ to Rs 33 lakh. Loans above Rs 75 lakh constituted 40% of originations, up from 35% in the previous year. In the gold loan segment, loans above Rs 5 lakh contributed 36.5% of the total value, compared to 24% in Q3 FY25.
Non-Banking Financial Companies (NBFCs) strengthened their position in high-velocity segments, representing 30.7% of gold loan origination value in Q3 FY26 and 91.1% of personal loan volumes. Public Sector Undertaking (PSU) banks expanded their presence in secured lending, while private banks dominated home loan originations. PSU banks accounted for 50.3% of originations, surpassing private banks’ 23.3% share.
The growth in non-metro cities, especially in mass-market products like personal loans, two-wheelers, and consumer durables, indicated increased access to formal credit and borrower participation beyond metropolitan areas. This trend signifies a broader reach of formal credit and borrower engagement in semi-urban and rural regions.
