New Delhi, Feb 24 (.) India’s retail credit portfolio rose sharply in the December 2025 quarter (Q3 FY26), supported by robust loan originations, improving asset quality, and shifts in product mix and lender dynamics, according to CRIF High Mark’s latest “How India Lends” study.
India’s retail lending portfolio grew to Rs 162.7 lakh crore, which is 18.1 per cent YoY, with 690 million active loan accounts. Asset quality improved, with PAR 31–180 declining to 3.1pc from 3.6 pc a year earlier. Quarterly originations in Q3 FY26 rose by 41pc YoY to Rs 25.3 lakh crore, the report said. As per the report, the gold loan originations more than doubled (90.3 pc YoY) driven by gold price rally. GST rate rationalization triggered 46.7 pc QoQ surge in two-wheeler originations and 22.1 pc QoQ in auto loans.
Festive season demand also boosted consumer durables (14.7 pc QoQ). Sole-proprietor loans grew 26.2 pc YoY, reflecting strong MSME credit appetite amid economic recovery. Higher ticket sizes continued to drive value growth across categories. Home loan average ticket size increased 6.4 pc QoQ to Rs 33 lakh, with loans above Rs 75 lakh accounting for 40 pc of originations (vs. 35 pc YoY).
A similar premiumisation trend was visible in gold loans, where loans above Rs 5 lakh contributed 36.5 pc of total value, up from 24 pc in Q3 FY25, the report added. This ticket-size expansion also explains the divergence between volume and value growth. Home loan volumes grew 4.1 pc YoY, while portfolio value expanded 10.5 pc YoY, indicating growth driven primarily by larger loans.
Conversely, personal loans recorded 13.5pc growth in volumes but 11.6pc growth in value, reflecting increasing penetration of smaller-ticket loans. The study highlighted that the home loan volumes grew 4.1 per cent YoY, while portfolio value rose 10.5 per cent YoY, suggesting growth driven by larger loans. In contrast, personal loans recorded 13.5 per cent growth in volumes but 11.6 per cent growth in value, indicating rising penetration of smaller-ticket loans.
It further noted a strengthening correlation between ticket size and credit performance. Higher-ticket personal loans above Rs 5 lakh reported PAR 91–180 below 1 per cent, while smaller-ticket loans exhibited relatively higher delinquency levels, reinforcing the stability of larger exposures.
. VK PPP RSA