India’s vibrant credit landscape saw AUM rise 17% to ₹130 lakh crore in the year to December 2025, as per a key report unveiled Thursday. This growth narrative reveals a sector adapting adeptly to borrower preferences and market signals.
Experian’s insights indicate Q3 FY26 credit sourcing for new loans leaped 36% YoY from 7%, fueled by robust demand across consumer and business segments.
Factors propelling lending include sourcing efficiencies, secured loan emphasis, and asset quality uplift—delinquencies (30+ days) declined to 3.3% of dues from 3.9%.
Secured loans exploded 42% (vs. 20% prior), with gold loans under ₹3 lakh stealing the show. This shift highlights asset-financing appeal and lender focus on safety.
Home and vehicle loans posted reliable gains amid steady demand. Festivities drove personal and durables financing, while credit cards moderated, signaling vigilance.
Commenting, Experian India CMD Manish Jain said, ‘India’s credit space is robust, thanks to demand stability, secured products’ rise, and repayment improvements. These aid sustainable financial solutions.’ PSBs dominate home/auto, NBFCs retail niches.
The report forecasts continued vigor, with improved metrics paving the way for broader credit penetration and economic contribution.