Gold, Home Loans Drive Share of Secured Loans in Q3Fy26

Mumbai: India’s lending system showed strong momentum supported by a steady demand, growing preference for secured loans and improving repayment behaviour in the December quarter of 2025-2026. According to a report by Experian credit bureau-Insights released on Thursday, as of December 2025, total industry Assets Under Management (AUM) reached Rs 1.30 lakh crore, marking a 17 per cent year-on-year (YoY) increase.

New loans issued during Q3 FY26 surged to Rs 20 lakh crore, up 36 per cent YoY, indicating sustained demand from both consumers and businesses.

Interestingly, a key trend that is emerging is the rising share of secured loans, including gold loans, home loans, and vehicle loans, which now accounts for 34 per cent of new loan sourcing, up from 30 per cent a year ago.

Overall secured loans grew 42 per cent year-on-year (Y-o-Y) during October–December FY26 (Q3FY26) compared with 20 per cent growth in the year-ago period. Net delinquencies remained among the lowest across product categories.

Gold loans continued to be a major growth driver, benefiting from rising gold prices and their suitability for small ticket loans below Rs 3 lakh. Gold loans recorded 48 per cent YoY growth, with AUM reaching Rs 10.6 lakh crore.

Home loans also grew steadily, with AUM at Rs 41 lakh crore, supported by public sector banks and stable repayment behaviour. Unsecured lending, including personal and consumer durable loans, continued to gain momentum. Personal loans AUM rose to Rs 15.4 lakh crore, up 11 per cent year on year, while consumer durable loans grew 18 per cent YoY on festive spending. Two-wheeler loans reached Rs 1.8 lakh crore. However, credit card issuance slowed slightly, though average credit limits increased, indicating cautious borrowing and lending in this segment, said the report.

“Overall, the quality of new sourcing has improved, suggesting positive growth trends in the coming quarters,” said the report.