Archive · 28 Jul 2025
Personal Loan Volume Rises, YoY Growth Slows in FY2025
People in India are taking out more personal loans, but the rate at which they are increasing has slowed down recently.
Banks, especially NBFCs, are giving out a larger portion of these loans.
There's a growing trend for larger loan amounts, while the number of new credit cards being issued has decreased.
These trends suggest changes in how people borrow money.
Personal loan volume increased to ₹14.6 lakh crore, growing over two years.
Year-on-year growth in personal loans decreased from 25.2% in FY2024 to 9.1% in FY2025.
NBFCs increased their share of personal loans from 27.6% to 36.4% between 2023 and 2025.
Origination value for personal loans over ₹10 lakh rose, indicating a preference for higher-value loans.
New credit card originations fell by 26.4% year-over-year in FY25.
- Who
- Consumers, banks, and financial institutions.
- What
- Trends in personal loans and credit cards in India.
- When
- FY2024 and FY2025.
- Where
- India
- Why
- Reflects shifts in consumer borrowing behavior and lending practices.
Lending Practices
Consumer Behavior
Credit policy adjustments
Lending Practices
Banks and NBFCs focus on managing default risks through tighter credit policies
Consumer Behavior
Consumers are adjusting their borrowing strategies due to economic conditions.
- Personal Loan POS (FY2025)
- ₹14.6 lakh crore
- Personal Loan YoY Growth (FY2025)
- 9.1%
- NBFC Share (Personal Loans)
- 36.4%
- New Credit Card Originations (FY25)
- 216.4 lakh
- Two-wheeler loan origination value (FY25)
- ₹110,056 crore
Sources
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