India’s Credit Market AUM Rises 18% to Rs 142 Lakh Crore in June: Report

The total value of loan sourcing stood at Rs 20 lakh crore during the quarter, also registering 18 per cent year-on-year growth. However, loan sourcing moderated compared with the fourth quarter of FY26.

Unsecured lending emerged as a key growth driver, with sourcing volumes rising 26 per cent year-on-year during Q1 FY27. Personal loans and consumer loans contributed significantly to the increase, while credit card activity also showed signs of recovery during the quarter.

Secured lending, meanwhile, continued to account for the majority of the retail credit portfolio by value, the report said.

Asset quality remained stable across the credit industry. Net 30+ delinquency stood at 3 per cent in June 2026, improving from 4.1 per cent in June 2025.

Non-banking financial companies (NBFCs) continued to expand their presence in consumption-focused lending segments, particularly personal loans, consumer durable financing and two-wheeler loans. Banks retained a strong position in larger-ticket secured products, including home and auto loans.

"India’s credit market continues to demonstrate resilience with sustained portfolio growth and good asset quality providing a strong foundation for the next phase of expansion. The momentum in unsecured lending reflects the evolving credit needs of consumers, while the continued strength of secured portfolios points to a balanced market," said Manish Jain, Country Managing Director, Experian India.

Among individual products, personal loan AUM stood at Rs 16.2 lakh crore, registering 14 per cent year-on-year growth. Fresh personal loan sourcing increased 32 per cent to Rs 3 lakh crore.

Credit card AUM stood at Rs 3.15 lakh crore, marking a marginal 0.1 per cent decline from a year earlier, although new credit card sourcing showed renewed momentum.

Consumer durable loan AUM increased 37 per cent year-on-year to Rs 1.1 lakh crore, while two-wheeler loan AUM stood at Rs 1.8 lakh crore.

Home loan AUM reached Rs 43.6 lakh crore, up 13 per cent from a year earlier. The average home loan ticket size also increased to Rs 34.8 lakh from Rs 32.2 lakh in June 2025.