In Mumbai, unsecured loans from banks for consumer durables, including appliances like washing machines and air conditioners, have declined by 5% in FY26, despite a 16% growth in overall banking sector advances. This trend is largely due to banks shifting their focus to credit cards for small-ticket financing, making it easier to offer zero EMI options without needing vendor agreements. As a result, non-banking finance companies (NBFCs) are increasingly dominating this segment, catering to customers who may not have access to credit cards. Currently, consumer durable loans constitute only 0.10% of the total non-food credit book of banks, amounting to ₹21,962 crore (approximately $2.6 billion USD). Analysts indicate that banks prefer larger loans, such as auto and personal loans, due to their higher yields, while gold loans have gained traction due to their links to agriculture and priority sector status.