India's Credit Market Surges to ₹75 Lakh Crore in FY26
India's credit market soars in FY26 with Rs 75 lakh crore loan sourcing
Asianet Newsable
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India's credit market experienced significant growth in FY26, with total loan sourcing rising 31% to ₹75 lakh crore. Key drivers include increased demand for secured loans, improved asset quality, and the role of fintechs in expanding access to credit, particularly in smaller cities.
- 01Total loan sourcing reached ₹75 lakh crore, a 31% increase year-on-year.
- 02Assets Under Management (AUM) grew 19% to ₹137 lakh crore as of March 2026.
- 03Gold loans surged 47% year-on-year, contributing significantly to the credit market expansion.
- 04Unsecured lending, particularly personal loans, rebounded after a slowdown, especially in Tier 2, 3, and 4 cities.
- 05Net 30+ delinquencies improved to around 3%, indicating better asset quality and repayment behavior.
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India's credit market has shown remarkable growth in FY26, with total loan sourcing increasing by 31% to ₹75 lakh crore. This surge is attributed to robust demand across retail consumer segments, enhanced borrower confidence, and improved underwriting practices. The report from Experian highlights a notable trend towards secured lending, particularly in gold loans, home loans, and other asset-backed products, which have simplified access to credit for new borrowers. Unsecured lending also saw a strong recovery, especially in personal loans, driven by deeper digital penetration in Tier 2, 3, and 4 cities. The overall assets under management (AUM) in the industry rose 19% to ₹137 lakh crore by March 2026, with gold loans leading the way with a 47% increase in AUM. Additionally, the asset quality improved, with net 30+ delinquencies dropping to approximately 3%, reflecting disciplined lending practices and better repayment behavior. Non-Banking Financial Companies (NBFCs) and fintechs played a crucial role in this growth by facilitating quicker onboarding and extending their reach to diverse borrower segments.
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The growth in the credit market indicates increased access to loans for consumers, particularly in smaller cities, which could stimulate local economies.
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