India’s Retail Credit Market Continues to Expand Amid Stronger Portfolio Performance: Experian Insights

• India’s retail credit market maintained momentum, with sourcing rising 18% YoY to Rs. 20 lakh crore and AUM growing 18% to Rs.142 lakh crores in Jun’26.
• Market reflects balanced growth supported by continued expansion across secured and unsecured loans.
• Consumption-led credit gained prominence in June 2026 as sourcing of Consumer Durable loans accelerated and Personal loans continued a strong growth trajectory
• Asset quality shows continued resilience, with Net 30+ delinquency at 3.0% in June 2026 at par with March 2026
• NBFCs strengthen their footprint across consumption-led products, particularly Personal Loans, Consumer Durable Loans and Two-Wheeler Loans

Mumbai, October 08, 2026: Experian, a leading global data and technology company, today released its latest Industry Insights, highlighting steady growth momentum across India’s credit market, stronger unsecured sourcing volumes and asset quality holding steady.

The report highlights that total loan sourcing value stood at Rs.20 lakh crores in Q1 FY27, growing 18% YoY, but with some moderation from Q4 FY26. Overall industry Assets Under Management (AUM) reached Rs.142 lakh crores as of June 2026, up 18% YoY, supported by continued expansion across secured and unsecured lending products.

Unsecured sourcing volumes grew 26% YoY in Q1 FY27 and emerged as a significant growth driver, while secured sourcing volumes have seen some moderation. Personal loans and Consumer Loans have contributed significantly to this growth rate, with Credit Cards showing some resurgence in the recent quarter. Secured lending, however, continued to account for majority of the retail portfolio value.

Asset quality has been maintained across the industry, with Net 30+ delinquency at 3.0% in June 2026 (YoY improvement from 4.1% in June 2025). The report also highlights that NBFCs continued to strengthen their presence across consumption-led products, particularly Personal Loans, Consumer Durable Loans and Two-Wheeler Loans, while banks maintained a strong presence across larger-ticket secured products.

Commenting on the insights, Manish Jain, Country Managing Director of Experian India, said “India’s credit market continues to demonstrate resilience, with sustained portfolio growth and good asset quality providing a strong foundation for the next phase of expansion. The momentum in unsecured lending reflects the evolving credit needs of consumers, while the continued strength of secured portfolios points to a balanced market.”

“India’s lending ecosystem has undergone a significant evolution over the past decade, with shifts in both the credit mix and borrower profile. As the market has broadened and matured, traditional portfolio-level measures like loans per user or balances alone may not provide a like-for-like comparison of credit quality across time. The expanding borrower base also comprises both regular users of credit, who maintain an ongoing relationship with formal credit, and occasional users, whose credit participation is more episodic and need-based. Differentiating between these borrower behaviours provides important context to measures such as credit intensity and indebtedness, which can otherwise look very different at an aggregate level. A more contemporary assessment needs to consider measures such as vintage performance, delinquency transition rates, high-frequency bureau reporting and performance across comparable borrower and product segments. Viewed through these lenses, the underlying credit quality of the market remains strong, even as the composition of credit continues to evolve.”

Key Highlights:

1. Personal Loans sourcing growth momentum strengthens in Jun’26 with good asset quality
   1. AUM stood at Rs.16.2 lakh crore as of June 2026, up 14% YoY. 
   1. New loans sourcing has seen a strong surge in Q1 FY27, with 32% YoY growth to Rs. 3 lakh crore
   1. NBFCs continue to deepen their presence in small-ticket lending of <30K, reinforcing their position in more granular customer credit segments
   1. Asset quality remains resilient, with Net 30+ delinquency at 2.3% in June 2026, signaling good credit quality

• Credit Cards regain traction with the market moving towards higher-value customers
  • AUM stood at Rs. 3.15 lakh crore as of June 2026, down 0.1% YoY.
  • After relatively muted portfolio growth, new cards sourcing is showing signs of renewed traction, supported by increasing ticket sizes
  • The industry continues to focus on higher-value card relationships rather than purely expanding cards volumes, with >Rs. 3 lakh segment accounting for ~37% of portfolio value in June 2026
  • Asset quality continues to improve, with Net 30+ rate at 3.5% in June 2026

• Consumer Durable Loans show rapid expansion with improving credit quality
  • AUM stood at Rs. 1.1 lakh crore as of June 2026, up 37% YoY.
  • Consumer durable loans emerged as one of the strongest growing retail asset segments, with new loans sourcing value recording 36% YoY growth in Q1 FY27
  • NBFCs and Private Banks continue to intensify their focus on the <35k segment, highlighting the dominance of mass-market consumption led credit
  • Asset quality improved further, with Net 30+ delinquency declining to 1.5% in June 2026 from 1.9% in March 2026

• Two-Wheeler Loans maintain steady momentum in Jun’26
  • Two-Wheeler Loans continue to demonstrate consistent portfolio and sourcing momentum (AUM at Rs.1.8 lakh crore in June 2026 and sourcing value grew 17% YoY to Rs.0.3 lakh crore in Q1 FY27)
  • The industry is gradually shifting towards higher-value vehicle financing, with concentration moving towards the mid-ticket segment of Rs.1-2 lakhs
  • Asset quality continues to hold steady in June 2026

• Home Loans maintain stable growth momentum supported by increasing ticket sizes
  • AUM stood at Rs.43.6 lakh crore as of June 2026, up 13% YoY.
  • New loan sourcing shows steady growth with average ticket size increasing from Rs. 32.2 lakh in Q1 FY26 to Rs.34.8 lakh in Q1 FY27.
  • Banks increased their presence in the premium housing-finance segment of >Rs. 80 lakh, suggesting growth trajectory becoming increasing skewed towards higher-value borrowers.
  • Asset quality holds resilient in this portfolio in June 2026

• Auto Loans growth remains resilient as banks move further up the ticket-size curve
  • Auto Loans continue to expand at a steady pace, supported both by new originations and increasing ticket sizes
  • Both public and private sector banks are becoming more prominent in their focus on higher-value auto loan financing, with gain in portfolio share for the >Rs. 20 lakhs ticket size segment

Experian combines the power of data, analytics and technology to help organisations make informed decisions across the credit lifecycle. Through Industry Insights, Experian continues to provide a data-driven perspective on market trends, helping lenders identify opportunities while maintaining a strong focus on portfolio quality and sustainable growth.

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing)

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