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Very Bullish +85

India's retail credit AUM climbs 16% to ₹162 lakh crore in March quarter; gold loans lead growth: Equifax

📈 India's retail credit AUM grew 16% year-on-year to ₹162 lakh crore in Q1 2026, with new loan originations jumping 40% to ₹29 lakh crore.

💰 Gold loans led the market with a 103% surge in originations and outstanding balances nearly doubling due to higher gold prices.

🏠 Housing finance remained the largest contributor with record disbursements of ₹3.4 lakh crore, led by public sector banks at 44% share.

🚀 NBFCs became the fastest-growing lender category overall, posting a 97% increase in loan originations during the quarter.

🛡️ Asset quality improved across all categories with declining delinquencies and fresh slippages in housing, personal, and business loans.

📉 Business loan growth remained subdued at just 3%, suggesting borrowers are pivoting toward gold-backed financing alternatives.

🏦 Microfinance sector recovered strongly with disbursements rising 19% to nearly ₹79,000 crore and delinquencies falling to 2.3%.

Bullish Signals
  • Total retail credit AUM expanded significantly by 16% year-on-year to reach a new high of ₹162 lakh crore.
  • New loan originations surged 40% to ₹29 lakh crore, indicating strong consumer demand and market liquidity.
  • Gold loans experienced explosive growth with originations up 103% and outstanding balances nearly doubling.
  • Housing finance achieved record-breaking disbursements of ₹3.4 lakh crore in the quarter.
  • NBFCs demonstrated exceptional growth momentum with a 97% increase in overall loan originations.
  • Asset quality improved broadly across all lending categories, including a notable decline in delinquencies and slippages.
  • Gold loans recorded some of the lowest delinquency levels among all retail credit products, enhancing portfolio health.
  • The microfinance sector saw a dramatic recovery with 30-plus day delinquencies dropping from 6.6% to 2.3%.
Full Analysis
India's retail credit market demonstrated robust momentum in the January-March quarter of 2026, with total assets under management (AUM) rising 16% year-on-year to reach ₹162 lakh crore. New loan originations surged by 40% to ₹29 lakh crore, driven primarily by gold loans which saw a massive 103% increase in originations and a near-doubling of outstanding balances. This growth was supported by higher gold prices and a shifting consumer preference toward secured borrowing options. Housing finance remained the dominant segment with home loan disbursements hitting a record ₹3.4 lakh crore, while Non-Banking Financial Companies (NBFCs) emerged as the fastest-growing lender category with a 97% increase in overall originations. NBFCs specifically led the gold loan segment with a staggering 213% year-on-year rise in originations, significantly outpacing traditional banks which accounted for 44% of new housing loans. Asset quality across the retail lending landscape improved markedly, with delinquencies and fresh slippages declining across housing, personal, business, gold loans, and credit cards. Gold loans recorded some of the lowest delinquency levels among all products, while the microfinance sector recovered significantly with 30-plus day delinquencies dropping to 2.3% from 6.6% a year earlier. Subhankar Mishra of Equifax noted that this combination of robust demand and disciplined repayment behavior positions the market for continued growth through the rest of 2026.