India’s Credit Sector Expands as Borrowers Show Stronger Financial Discipline – Experian Report

▴ India’s credit journey
India’s credit journey is gaining strength, backed by growing demand and improving repayment behaviour. According to the latest insights from Experian, total loans outstanding reached nearly ₹130 lakh crore as of December 2025, marking a healthy 17% year-on-year growth.

India’s credit journey is gaining strength, backed by growing demand and improving repayment behaviour. According to the latest insights from Experian, total loans outstanding reached nearly ₹130 lakh crore as of December 2025, marking a healthy 17% year-on-year growth. In Q3 FY26 alone, new loans worth ₹20 lakh crore were originated, reflecting continued confidence from both individuals and businesses. At the same time, repayment delays have declined, signalling stronger financial discipline and a more stable credit environment.

 

One of the clearest trends is the rising preference for secured loans such as gold loans, home loans and vehicle loans. The share of secured loans in new originations increased to 34%, driven largely by strong demand for gold and housing finance. Gold loans are expanding rapidly as they offer quick and convenient access to funds for short-term needs. Home and auto loans continue to see steady traction. Unsecured loans, including personal loans and consumer durable financing, also remained active during the festive season. Meanwhile, credit card originations moderated, reflecting thoughtful and measured credit usage.

 

The data further highlights how different lender segments are contributing to this growth. Public sector banks are expanding their presence in home and auto loans, while NBFCs continue to support access to small-ticket credit such as consumer durable and two-wheeler finance, especially for first-time borrowers. Overall, stronger credit assessment practices, responsible lending frameworks and the power of comprehensive data are working together to enhance portfolio quality and support sustainable, long-term growth across India’s credit ecosystem.

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