The Indian credit industry is on a high-growth trajectory, with AUM expanding by 17% annually to hit ₹130 lakh crore as of December 2025. Thursday’s report paints a picture of a thriving sector, propelled by innovative lending practices and improving financial health.
Experian’s latest analysis shows new loan sourcing in Q3 FY26 rocketed 36% year-over-year, a significant leap from 7% the prior year. Persistent appetite for credit among individuals and enterprises has been the cornerstone of this momentum.
Lending activity flourished due to enhanced sourcing channels, a boom in secured lending, and better asset quality metrics. The share of payments overdue by 30+ days fell to 3.3% from 3.9%, highlighting positive shifts in borrower behavior.
Secured loan disbursals jumped 42% versus 20% last year, led by gold loans in the sub-₹3 lakh category. This trend underscores a pivot towards collateralized products, offering security to lenders while catering to borrower needs.
Stable consumer sentiment supported consistent rises in home and auto loans. Festive purchases boosted personal and durables loans, though credit card growth tempered, reflecting prudent risk management.
‘Our credit ecosystem demonstrates resilience through consistent demand and a tilt towards secure lending options,’ stated Experian India CMD Manish Jain. He noted public banks strengthening in housing and vehicle finance, with NBFCs excelling in consumer and two-wheeler segments.
Looking ahead, this balanced growth across secured and select unsecured categories suggests the industry is well-positioned to support India’s economic aspirations, balancing expansion with risk control.