1 day ago
India’s Credit Market AUM Rises 18% to Rs 142 Lakh Crore
India’s credit market grew during the first quarter of FY27.
By June 2026, loans and other credit managed in the market totalled Rs 142 lakh crore.
That was 18% more than a year earlier.
New loan sourcing also increased, although it was lower than in the previous quarter.
Unsecured lending, which does not rely on collateral, grew quickly.
Personal and consumer loans helped drive that growth, while credit card lending showed signs of picking up.
Late payments of more than 30 days became less common than a year earlier.
NBFCs were especially active in some consumer loans, while banks remained strong in home and car loans.
India’s credit market AUM reached Rs 142 lakh crore in June 2026, up 18% year on year.
Loan sourcing totalled Rs 20 lakh crore in Q1 FY27, up 18% year on year but below Q4 FY26.
Unsecured lending sourcing grew 26%, led by personal and consumer loans; credit cards showed renewed sourcing traction.
Net 30+ delinquency improved to 3% in June 2026 from 4.1% a year earlier.
NBFCs were prominent in consumption-led loans, while banks remained strong in home and auto loans.
- Who
- India’s credit market, including banks and NBFCs; the figures are from an Experian report.
- What
- Credit market AUM rose 18% year on year to Rs 142 lakh crore, while loan sourcing and several lending products also grew.
- Where
- India.
- When
- As of June 2026; the report covers Q1 FY27.
- Why
- The report attributes growth in part to momentum in unsecured lending and consumer credit needs; it also describes secured lending as remaining strong.
Growth and consumer lending
Portfolio balance and asset quality
Unsecured lending momentum
Growth and consumer lending
Unsecured sourcing grew 26% year on year, with personal and consumer loans contributing significantly.
Portfolio balance and asset quality
The report also says secured lending continued to account for the majority of retail portfolio value, indicating that growth was not limited to unsecured credit.
Lender presence
Growth and consumer lending
NBFCs strengthened their presence in consumption-led products, including personal, consumer durable and two-wheeler loans.
Portfolio balance and asset quality
Banks maintained a strong presence in larger-ticket secured products such as home and auto loans.
Key facts
- Credit market AUM
- Rs 142 lakh crore as of June 2026, up 18% year on year.
- Loan sourcing
- Rs 20 lakh crore in Q1 FY27, up 18% year on year but moderated from Q4 FY26.
- Unsecured sourcing
- Grew 26% year on year in Q1 FY27.
- Net 30+ delinquency
- 3% in June 2026, compared with 4.1% in June 2025.
- Personal loans
- AUM of Rs 16.2 lakh crore, up 14%; new sourcing rose 32% to Rs 3 lakh crore.
- Credit cards
- AUM of Rs 3.15 lakh crore, down 0.1% year on year; new sourcing showed renewed traction.
- Home loans
- AUM of Rs 43.6 lakh crore, up 13%; average ticket size rose to Rs 34.8 lakh from Rs 32.2 lakh.
Quotes
Manish Jain
Country Managing Director of Experian India
“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”
thehansindia.com
Sources
Related news
Personal Loans Outpace Home Loans as Credit Growth Accelerates
Three NBFCs Position for India’s Next Unsecured Credit Cycle
OnEMI Reports 68.4% AUM Growth, Q2 Disbursements Reach ₹4,612 Crore
NBFCs Account for 47% of India's New Consumer Borrowers
India's Digital Lending Boom Driven by Small Ticket Personal Loans
Poonawalla Fincorp Q2 Profit Rises to ₹375 Crore
Why Equal Credit Card Spending Can Affect Scores Differently
How Festive Spending Can Protect or Hurt Your Credit Score
Google Expands Gemini With New Connected Apps
