India’s retail credit grows 18% YoY to Rs 162.7 lakh crore in Q3 FY26: Report

India’s retail credit portfolio recorded strong growth in the December 2025 quarter (Q3 FY26), supported by robust loan originations, improving asset quality, and evolving product mix and lender dynamics, according to CRIF High Mark’s latest How India Lends report.

The country’s retail lending portfolio expanded to Rs 162.7 lakh crore, reflecting an 18.1 per cent year-on-year (YoY) increase, with 690 million active loan accounts. Asset quality also improved, with PAR 31–180 declining to 3.1 per cent from 3.6 per cent a year earlier. Quarterly originations surged 41 per cent YoY to Rs 25.3 lakh crore in Q3 FY26, the report said.

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Gold loan originations more than doubled, rising 90.3 per cent YoY, driven by the rally in gold prices. Meanwhile, GST rate rationalisation triggered a 46.7 per cent quarter-on-quarter (QoQ) jump in two-wheeler loan originations and a 22.1 per cent QoQ rise in auto loans.

Festive season demand also boosted consumer durable loans, which grew 14.7 per cent QoQ. Loans to sole proprietors increased 26.2 per cent YoY, reflecting strong credit demand from the MSME sector amid the ongoing economic recovery.

Higher ticket sizes continued to drive value growth across lending categories. The average home loan ticket size rose 6.4 per cent QoQ to Rs 33 lakh, with loans above Rs 75 lakh accounting for 40 per cent of total originations, compared to 35 per cent a year earlier.

A similar premiumisation trend was visible in gold loans, where loans above Rs 5 lakh contributed 36.5 per cent of total value, up from 24 per cent in Q3 FY25, the report noted.

This increase in ticket size also explains the divergence between volume and value growth. Home loan volumes grew 4.1 per cent YoY, while the portfolio value expanded faster at 10.5 per cent YoY, indicating that growth was primarily driven by larger-ticket loans.

In contrast, personal loans recorded 13.5 per cent YoY growth in volumes but a relatively lower 11.6 per cent increase in value, reflecting deeper penetration of smaller-ticket loans.

The study also highlighted a strengthening link between ticket size and credit performance. Higher-ticket personal loans above Rs 5 lakh reported PAR 91–180 levels below 1 per cent, while smaller-ticket loans showed relatively higher delinquency rates, reinforcing the stronger credit stability associated with larger exposures.

Overall, the findings point to a maturing retail credit market in India, characterised by rising loan sizes, improving asset quality, and sustained credit demand across consumer and MSME segments.