Archive · 19 Dec 2025
Tamil Nadu, Bihar, UP Lead in Personal Loan Growth in FY25
Personal loans are growing fast in India.
In the year FY25, Tamil Nadu, Bihar, and Uttar Pradesh saw the biggest increases.
Over a longer period, Gujarat has grown the most.
Maharashtra has the highest total loans.
Southern and Western states have most of the loan money.
Experts say this is good for the economy because it helps people spend more, but too many loans can be risky.
Tamil Nadu recorded the highest year-on-year growth in personal loans at 18.5% in FY25.
Bihar and Uttar Pradesh followed with 15.5% and 15% growth respectively in FY25.
Gujarat has the highest 20-year compound annual growth rate (CAGR) in personal loans at 18%.
Maharashtra holds almost 20% of all India's personal loan liabilities at the end of FY25.
Southern and Western states account for over 61% of the total outstanding personal loans in India.
- Who
- Scheduled commercial banks (SCBs) and individuals in various Indian states
- What
- Growth in personal loans
- When
- FY25 and long-term trends over 20 years
- Where
- India, with specific focus on Tamil Nadu, Bihar, Uttar Pradesh, Gujarat, Maharashtra, Andhra Pradesh, Telangana, Haryana, Rajasthan, Odisha, West Bengal, Kerala
- Why
- Increased banking and microfinance penetration, steady expansion in salaried employment, urbanisation, and access to formal credit
- Fastest-growing state (y-o-y)
- Tamil Nadu (18.5%)
- Second fastest-growing state (y-o-y)
- Bihar (15.5%)
- Third fastest-growing state (y-o-y)
- Uttar Pradesh (15%)
- Highest long-term growth (CAGR 20-year)
- Gujarat (18%)
- State with highest outstanding loans
- Maharashtra (20%)
- Share of total credit liability (Southern & Western states)
- 61%