India's Retail Lending Surges in Q2 FY26: Gold, Auto, and Large-Ticket Loans Drive 18% YoY Growth

The retail lending landscape of India continued its stable upward trajectory in Q2 FY26, driven by strong growth in secured large-ticket loans and a rebound in key consumer credit segments, said a report by CRIF High Mark. 
As per the latest edition of How India Lends released by CRIF High Mark, the retail and consumption loan outstandings grew 18 per cent year-on-year and 4.5 per cent sequentially.

The growth, it said, is supported by heightened demand for gold loans, auto loans, and a resurgence in personal loans and credit cards. PSU banks further consolidated their leadership across several major loan categories.
The report is based on data as of September 2025.

Gold loans emerged as the fastest-growing segment, with portfolio outstandings increasing 35.8% YoY and 8.6% QoQ, alongside a 53% YoY rise in originations. Auto loans also recorded a strong uptick, expanding 16.3% YoY, supported by rising average ticket sizes and a growing share of PSU banks.

Further, the home loan originations rebounded sharply by 25% QoQ to Rs 3.02 lakh crore, buoyed by an 18% increase in volumes and a shift toward high-value loans. 
Loans above Rs 75 lakh accounted for 39.4% of originations, while PSU banks increased their share to 50%.

Personal loan portfolios grew 12% YoY, with originations rising 32% QoQ to Rs 2.92 lakh crore. Large-ticket loans above Rs 10 lakh expanded their presence to 37.4% of total originations, driven predominantly by PSU banks, the report said.
Two-wheeler loans recorded close to 15% YoY growth, though originations softened QoQ due to monsoon-related seasonality. Higher-value two-wheeler loans in the Rs 1-1.5 lakh range continued to gain share.

During Q2 FY26, consumer durable loans saw moderated sequential demand but remained strong on a yearly basis with 19% YoY growth. Credit card issuances continued a deliberate slowdown, dropping to 44 lakh new cards, even as total outstanding balances rose to Rs 3.5 lakh crore and delinquencies improved across key risk bands.