MUMBAI: Gold loans have emerged as the primary driver of retail credit in FY26, growing 50.4%, while the home loan portfolio expanded only 9.4%, with growth largely fueled by higher ticket sizes. Credit card outstandings remained the slowest segment with flat year-on-year growth, according to a recent report by CRIF India.
Quarterly Trends and Slowdown
The March quarter witnessed a clear slowdown after the festive season. Auto loans declined 11.6% sequentially, while two-wheeler loans fell 22.1%, reflecting moderation in discretionary consumption. Similarly, consumer durable financing cooled after festive demand tapered off.
Overall Retail Lending Portfolio
The overall retail lending portfolio rose to Rs 170.2 lakh crore as of March 2026, registering a 16.6% year-on-year increase and a 4.6% sequential rise. Consumption loans grew 15.3% year-on-year to Rs 118.6 lakh crore, supported by expansion across gold loans, personal loans, and consumer durable financing.
Home Loans and Credit Cards
In contrast, the home loan segment remained relatively muted, growing 9.4% year-on-year to Rs 44.4 lakh crore and 3.4% sequentially, with growth driven by higher ticket sizes rather than volumes. Credit card balances remained flat year-on-year at Rs 3.4 lakh crore and declined 1.1% on a quarter-on-quarter basis.
Gold Loans Lead Growth
Gold loans emerged as the fastest-growing segment, with the outstanding portfolio rising to Rs 18.6 lakh crore, aided by higher collateral values due to a surge in gold prices and strong demand. Personal loans grew 12.9% year-on-year, while consumer durable loans expanded 20.8%. Vehicle loans also recorded annual growth, with auto and two-wheeler loans rising between 13.9% and 15.1%.
Structural Shift in Retail Lending
According to CRIF, a structural shift is underway in retail lending, with portfolio growth outpacing the rise in active loan volumes, signaling a move towards larger ticket sizes across products. This premiumisation trend is visible in gold loans, home loans, and consumer durable financing.
Loan Originations Remain Strong
Loan originations remained strong, with total originations value rising 42.2% year-on-year and 9.2% sequentially in Q4 FY26. Gold loans led this momentum, while personal loans and consumer durable loans recorded over 30% annual growth. Housing loan originations held steady sequentially, supported by higher ticket sizes rather than a rise in new borrowers.
