--- title: "Gold loans lead retail credit growth as lenders pivot to secured assets" type: "News" locale: "en" url: "https://longbridge.com/en/news/287057640.md" description: "India's retail credit market saw a significant shift towards secured lending in FY26, with gold loans growing 50.4% YoY to ₹18.6 trillion, becoming the second-largest retail credit product. Total retail loans rose 16.6% YoY to ₹170.2 trillion. Home loans grew 9.4% YoY, while personal loans increased 12.9%. Regulatory changes and rising gold prices contributed to this growth, with improved asset quality in gold loans. However, credit card balances remained flat, reflecting tighter lending standards." datetime: "2026-05-20T03:35:22.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287057640.md) - [en](https://longbridge.com/en/news/287057640.md) - [zh-HK](https://longbridge.com/zh-HK/news/287057640.md) --- # Gold loans lead retail credit growth as lenders pivot to secured assets India’s retail credit market ended FY26 with a decisive shift towards secured lending, as gold loans emerged as the fastest-growing segment while home loans and vehicle finance maintained steady momentum. Total retail loans outstanding rose 16.6 per cent year-on-year (YoY) to ₹170.2 trillion as of March 2026, according to CRIF High Mark data. Consumption loans grew 15.3 per cent to ₹118.6 trillion, supported by broad-based expansion across gold loans, personal loans and consumer-durable financing. Gold loans were the standout performer. Outstanding balances surged 50.4 per cent YoY to ₹18.6 trillion, overtaking personal loans to become the second-largest retail credit product after home loans. Rising bullion prices sharply lifted collateral values, pushing average ticket sizes up 52 per cent YoY to ₹2.19 lakh in Q4 FY26. Regulatory easing also aided growth. The Reserve Bank of India’s (RBI’s) decision to raise the loan-to-value cap to 85 per cent for gold loans up to ₹2.5 lakh widened the eligible borrower base, particularly among first-time formal borrowers. Despite rapid expansion, asset quality improved. The 31-180 days past-due ratio in gold loans declined to 1.2 per cent in March 2026 from 2 per cent a year earlier, aided by stronger collateral coverage and rising gold prices. Home loans, the largest retail segment with outstanding balances of ₹44.4 trillion, grew at a steadier 9.4 per cent YoY. Growth in balances continued to outpace active loan growth, which stood at 2.5 per cent, reflecting ongoing premiumisation in the mortgage market. Loans above ₹75 lakh now account for 40.7 per cent of home-loan originations by value, up from 33.6 per cent in Q4 FY24. Public-sector banks retained leadership in the segment, accounting for 44.5 per cent of originations value in Q4 FY26. Personal loans recovered from the moderation seen in FY25, with balances rising 12.9 per cent YoY to ₹16.5 trillion. Full-year originations rose 28.9 per cent to ₹11.5 trillion. NBFCs continued to dominate small-ticket unsecured lending, accounting for nearly 91 per cent of origination volumes in Q4 FY26. However, stress indicators remain elevated in parts of the unsecured book. PAR 180+ in personal loans stood at 5.3 per cent in March 2026, while early-stage delinquency for public-sector banks worsened sequentially. Vehicle finance maintained healthy growth, though disbursement momentum softened after the festive season. Auto loans grew 13.9 per cent YoY and two-wheeler loans 15.1 per cent, but originations declined sequentially in Q4 FY26 as demand normalised. Consumer-durable loans expanded 20.8 per cent YoY to ₹1.01 lakh crore, aided by GST rationalisation and growing demand for premium products. NBFCs remained dominant, controlling 85 per cent of originations value. Credit cards, by contrast, remained subdued. Outstanding balances were flat YoY at ₹3.4 lakh crore, while new card issuances fell for a second consecutive year as lenders tightened underwriting standards amid regulatory scrutiny and concerns over unsecured retail stress. ### Related Stocks - [600547.CN](https://longbridge.com/en/quote/600547.CN.md) - [KGC.US](https://longbridge.com/en/quote/KGC.US.md) - [600489.CN](https://longbridge.com/en/quote/600489.CN.md) - [601899.CN](https://longbridge.com/en/quote/601899.CN.md) - [AEM.US](https://longbridge.com/en/quote/AEM.US.md) - [GOLD.US](https://longbridge.com/en/quote/GOLD.US.md) - [NEM.US](https://longbridge.com/en/quote/NEM.US.md) - [518850.CN](https://longbridge.com/en/quote/518850.CN.md) - [159562.CN](https://longbridge.com/en/quote/159562.CN.md) - [GLDM.US](https://longbridge.com/en/quote/GLDM.US.md) - [GDXJ.US](https://longbridge.com/en/quote/GDXJ.US.md) - [JNUG.US](https://longbridge.com/en/quote/JNUG.US.md) - [NUGT.US](https://longbridge.com/en/quote/NUGT.US.md) - [SGDJ.US](https://longbridge.com/en/quote/SGDJ.US.md) - [09824.HK](https://longbridge.com/en/quote/09824.HK.md) - [GDXU.US](https://longbridge.com/en/quote/GDXU.US.md) - [02824.HK](https://longbridge.com/en/quote/02824.HK.md) - [RING.US](https://longbridge.com/en/quote/RING.US.md) - [GOEX.US](https://longbridge.com/en/quote/GOEX.US.md) - [GDX.US](https://longbridge.com/en/quote/GDX.US.md) - [IAU.US](https://longbridge.com/en/quote/IAU.US.md) - [GDXY.US](https://longbridge.com/en/quote/GDXY.US.md) - [GLD.US](https://longbridge.com/en/quote/GLD.US.md) - [GOAU.US](https://longbridge.com/en/quote/GOAU.US.md) - [UGL.US](https://longbridge.com/en/quote/UGL.US.md) - [SGDM.US](https://longbridge.com/en/quote/SGDM.US.md) - [82824.HK](https://longbridge.com/en/quote/82824.HK.md) - [GDXW.US](https://longbridge.com/en/quote/GDXW.US.md) ## Related News & Research - [$1000 Invested In SPDR Gold MiniShares Trust 5 Years Ago Would Be Worth This Much Today](https://longbridge.com/en/news/286819467.md) - [AGNICO EAGLE ANNOUNCES INVESTMENT IN WALLBRIDGE MINING COMPANY LIMITED | AEM Stock News](https://longbridge.com/en/news/287063692.md) - [Bitget launches 'Gold Fast or Go Home Challenge' for Gold CFD Trading](https://longbridge.com/en/news/287052667.md) - [PRECIOUS-Gold edges higher from over 1-1/2-month low but higher yields cap gains](https://longbridge.com/en/news/286745980.md) - [09:15 ETWith Gold Above $4,500 and Crews on the Ground, This Permitted Tanzanian Developer Just Closed Its Funding Stack](https://longbridge.com/en/news/287073010.md)