India’s Consumption Loans Cross Rs 105 Lakh Crore in Q1 FY26, Gold Loans Surge 35%

The jump was led by growth in the gold, two-wheeler, and auto loan segments.

India’s consumption loan portfolio outstanding grew by 14.5 per cent to reach Rs 105.6 lakh crore during the first quarter of FY26 from the corresponding period during the last fiscal, led by growth in gold, two-wheeler, and auto loan segments, while personal loan growth slowed sharply.

According to the latest quarterly report on India’s credit landscape by credit bureau CRIF High Mark, gold loans surged 34.6 per cent during the April-June quarter of FY26 to Rs 13.4 lakh crore from the April-June quarter of FY25, with originations rising 38.4 per cent on the back of higher gold prices. Delinquencies in the 91–180 day bucket declined across most lenders, with PSBs emerging as consistent strong performers.

The auto loan portfolio also increased by 14.5 per cent to Rs 8.3 lakh crore. However, origination growth moderated to 3.3 per cent in Q1 FY26 (Rs 0.81 lakh crore), compared to 6.2 per cent in Q1 FY25. Loans in the Rs 5–10 lakh segment remain the largest, though their share has steadily declined from 44.4 per cent in Q1 FY23 to 39.7 per cent in Q1 FY26.

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Personal loans and consumer durable loans also grew to Rs 14.9 lakh crore and Rs 79.8k crore, respectively. The credit card segment, however, remained under pressure, with new issuances falling 28 per cent to 40.6 lakh in Q1 FY26, following a 17.9 per cent drop in the same quarter last year.

Home loans, on the other hand, saw origination value touching Rs 2.5 lakh crore in Q1 FY26, with PSBs expanding their market share sharply from 37.6 per cent to 46.2 per cent by value over the year. Growth was led by big-ticket loans above Rs 75 lakh, even as smaller-ticket loans continued to lose share.

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“India’s lending patterns are entering a phase of structural shift. Borrowers are seeking higher-value credit, and lenders are realigning portfolios with sharper risk focus and deeper customer segmentation. How India Lends provides timely insights into these trends, enabling institutions and policymakers to make more informed, inclusive, and sustainable credit decisions,” said Sachin Seth, Chairman, CRIF High Mark and Regional Managing Director – CRIF India & South Asia.