India’s retail lending market continued to grow in the fourth quarter of the fiscal year 2026, though the growth rate moderated to 4.6 percent quarter-on-quarter. As reported by CRIF High Mark in their latest study titled “How India Lends – Credit Landscape in India,” gold loans have emerged as the leading driver of this growth, reflecting a broader shift toward secured and collateral-backed credit.
As of March 2026, total retail loans outstanding reached ₹170.2 lakh crore, reflecting a year-on-year increase of 16.6 percent and a quarter-on-quarter growth of 4.6 percent. Consumption loans rose by 15.3 percent year-on-year, totaling ₹118.6 lakh crore.
The report identifies a significant trend toward secured lending—primarily driven by gold loans—which is now increasingly supported by stable housing finance. Gold loans specifically have reported a portfolio increase of 50.4 percent year-on-year, totaling ₹18.6 lakh crore, with a 15 percent rise quarter-on-quarter. Factors contributing to this surge include elevated gold prices, larger loan amounts, and favorable regulatory changes.
The report highlights gold loans as the standout segment, noting that it has demonstrated improved delinquency trends and is now recognized as “the strongest engine of retail credit growth in FY26.” Mohit Jain, Group Head at Axis Bank, stated that gold loans have become the second-largest product in retail lending, following home loans, marking a significant milestone in customer credit portfolios.
Moreover, Jain observed a trend toward higher ticket sizes and income-generating purposes among borrowers, signaling an evolving comfort level with loans backed by gold.
In the housing finance sector, home loans also maintained robust growth, with an outstanding portfolio of ₹44.4 lakh crore, up 9.4 percent year-on-year and 3.4 percent quarter-on-quarter. The report noted that the growth in balances outpaced active loan growth, indicating a premiumization trend toward larger mortgages.
Pankaj Gadgil, MD and CEO of Aditya Birla Housing Finance Ltd, described India’s housing finance market as “structurally resilient,” citing urbanization, favorable demographics, and improving affordability as supporting factors. He added that future growth will hinge on balancing expansion with discipline, enhancing technology and AI use, strengthening distribution, building ecosystem linkages, and maintaining asset quality.
Additionally, personal loans grew by 12.9 percent year-on-year, and consumer durable loans expanded by 20.8 percent, though vehicle loans experienced a moderation in growth following the festive season. CRIF High Mark indicated improved portfolio quality across most retail lending categories, with a decrease in delinquency levels in secured segments such as home loans and gold loans.
Conversely, certain unsecured and consumption-linked categories indicated signs of slowdown in the fourth quarter of FY26. Auto loan originations fell by 11.6 percent quarter-on-quarter, while two-wheeler loans experienced a more pronounced decline of 22.1 percent. Credit card balances remained static year-on-year, showing a negative trend on a sequential basis.
Published on May 20, 2026.
