CRIF High Mark flags steady credit expansion in Q2 FY26 as secured, large-ticket loans drive growth

India’s lending market expanded steadily in Q2 FY26, with secured and large-ticket loans driving most of the momentum, according to CRIF High Mark’s How India Lends: September 2025 study. The report shows strong activity in gold, home, auto and personal loans, even as lenders applied stricter filters for new borrowers and moderated issuance in certain consumption categories.

Secured lending leads overall expansion

Retail and consumption loan outstandings grew 18% year-on-year and 4.5% quarter-on-quarter. Gold loans posted the sharpest rise, followed by auto and two-wheeler segments. Lending to sole proprietors also saw continued expansion, touching ₹46.7 lakh crore.

Home loans pick up with higher-value disbursals

Home loan originations rose to ₹3.02 lakh crore in Q2 FY26, supported by higher volumes and a clear shift toward loans above ₹75 lakh. PSU banks widened their lead in the segment, accounting for half of all new disbursals.

Personal loan disbursals rise on big-ticket demand

Personal loan originations increased to ₹2.92 lakh crore, driven by a rise in loans above ₹10 lakh. PSU banks contributed significantly to this uptick, while NBFCs continued to anchor the small-ticket market.

Auto and two-wheeler lending move in different directions

Auto loan originations improved after two soft quarters, taking the portfolio up 16.3% year-on-year. Two-wheeler loans expanded mildly, though fresh disbursals dipped due to seasonal weakness. Higher-value two-wheeler loans continued to gain share among new borrowers.

Consumer durable loans ease; credit card additions stay slow

Consumer durable loan originations moderated sequentially, while credit card issuance declined further to 44 lakh. Despite slower onboarding, outstanding credit card balances increased and repayment performance strengthened.

Gold loans extend their lead

Gold loans remained the fastest-growing category, with both originations and outstanding balances rising steadily. Average ticket sizes also increased, and asset performance improved across lenders.

CRIF High Mark views credit cycle as stable

Sachin Seth, Chairman of CRIF High Mark and Regional Managing Director – CRIF India & South Asia, said the findings point to a credit landscape that remains resilient, supported by firm demand in key secured segments and measured underwriting across lender types.

The report indicates that a shift toward high-value and secured borrowing is shaping the contours of the retail lending market, influencing lenders’ strategies as they prepare for the second half of FY26.Read about our editorial guidelines and ethics policy