Mumbai: CRIF High Mark has released the June 2025 edition of its flagship study, How India Lends, offering a detailed analysis of India’s evolving credit market between April and June 2025.
The report captures lending patterns across key segments, including home, personal, vehicle, consumer durable loans, credit cards, and for the first time, gold loans.
The findings highlight a steady expansion in India’s lending landscape, with borrowers gravitating toward higher-value credit and lenders recalibrating portfolio strategies with sharper risk and product focus.
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Lending Dynamics in How India Lends: June 2025 Edition
According to How India Lends, India’s overall consumption loan portfolio outstanding reached ₹105.6 lakh crore in June 2025, recording 14.5% year-on-year growth. This momentum was largely driven by gold loans (+34.6%), two-wheeler loans (+14.9%), and auto loans (+14.5%). In contrast, personal loan growth slowed to 8.7%.
- Home Loans Surge: Origination value hit ₹2.5 lakh crore in Q1 FY26, with PSU banks expanding market share from 37.6% to 46.2% by value within a year. Growth was concentrated in big-ticket loans above ₹75 lakh, while smaller-ticket home loans saw a decline in share.
- Personal Loans Expand: Outstanding portfolios rose from ₹13.8 lakh crore to ₹14.9 lakh crore YoY. NBFCs captured a larger market share, while both private and public sector banks experienced slower growth.
- Auto Loans Moderate: The auto loan portfolio touched ₹8.3 lakh crore, up 14.5% YoY. Origination growth eased to 3.3% in Q1 FY26, compared to 6.2% in Q1 FY25. Loans in the ₹5–10 lakh segment dominated, though their share dropped steadily from 44.4% in Q1 FY23 to 39.7% in Q1 FY26.
- Consumer Durables and Credit Cards: Consumer durable loans increased 7.9% YoY to ₹79,800 crore. Credit card growth remained under pressure as new issuances fell 28% YoY to 40.6 lakh in Q1 FY26, following a 17.9% decline last year. However, outstanding balances rose, and private banks retained dominance with improved asset quality.
- Gold Loans Accelerate: Driven by rising gold prices, gold loan portfolios surged 34.6% YoY to ₹13.4 lakh crore. Origination volumes grew 38.4% YoY in Q1 FY26. PSU banks led the market by value, while NBFCs strengthened their position in smaller-ticket gold loans.
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Asset quality across the segment remained resilient, with delinquencies in the 91–180 day bucket showing declines.
Sachin Seth, Chairman of CRIF High Mark and Regional Managing Director – CRIF India & South Asia, noted: “India’s lending patterns are entering a phase of structural transformation. Borrowers are increasingly opting for higher-value credit, while lenders are realigning portfolios with sharper focus on risk management and customer segmentation. How India Lends provides actionable insights that can guide institutions and policymakers toward sustainable and inclusive credit practices.”
Structural Shifts to Define FY26 and Beyond
The findings of How India Lends: June 2025 edition reflect a lending ecosystem in transition. With borrowers seeking larger ticket sizes and lenders reshaping product strategies, the trends are expected to significantly influence lending behaviour, portfolio management, and financial inclusion in the coming fiscal year.
