India’s credit landscape continued to strengthen in Q3 FY26, driven by rising secured lending, improving asset quality and steady credit demand. According to Experian’s Industry Insights for February 2026, the country’s total assets under management (AUM) stood at Rs.130 lakh crore as of December 2025, marking a 17% year-on-year rise, compared with 23% growth in the previous year. Credit sourcing of new loans during Q3 FY26 reached Rs.20 lakh crore, up 36% year-on-year, reflecting sustained demand from both consumers and businesses.
Secured loans led the expansion, registering 42% year-on-year growth in Q3 FY26 compared with 20% in the prior year. This segment includes gold loans, home loans and vehicle loans. Unsecured products such as personal loans and consumer durable loans also saw traction, partly supported by festive spending. However, credit card issuance slowed, indicating more cautious borrowing. Overall portfolio health improved, with net 30+ delinquency declining from 3.9% to 3.3% year-on-year, pointing to stronger repayment behaviour.
Public sector banks strengthened their position in home and auto loans, while non-bank financial companies (NBFCs) continued to dominate retail-focused segments like consumer durable and two-wheeler loans, which largely serve first-time and mass-market borrowers. Personal loan AUM reached Rs.15.4 lakh crore, up 11% year-on-year, with early signs of stabilisation in delinquency trends and NBFCs expanding in loans below Rs.3 lakh. Credit card AUM stood at Rs.3.4 lakh crore, down 4% year-on-year, even as average credit limits increased. Consumer durable loans grew 18% and two-wheeler loan AUM rose to Rs.1.8 lakh crore, with NBFCs leading sourcing activity.
In India, gold loans recorded standout performance, with AUM climbing 48% year-on-year to Rs.10.6 lakh crore, driven by strong demand for small-ticket loans and low delinquency levels. India’s home loan portfolios expanded to Rs.41 lakh crore, up 11%, with public sector banks gaining market share and asset quality remaining stable. Auto loan AUM in India reached Rs.8.8 lakh crore, reflecting 15% growth, as banks increased participation and overall portfolio quality improved. The broader trend in India indicates that secured lending will continue to anchor credit growth in the coming quarters, supported by stronger credit discipline and sustained demand.
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