India’s retail lending market recorded strong growth alongside improving asset quality in 2025, according to the latest Disha – Equifax Retail Insights report released by Equifax India.
The report, based on data as of December 2025, shows fresh loan disbursements rising 40% year-on-year, while overall assets under management (AUM) expanded by nearly 13%. Equifax described the period as a phase where strong growth has been accompanied by improvements in credit performance.
Slippages declined across major loan categories. Personal loan slippages fell to 0.65% in December 2025 from 0.86% a year earlier, while home loan slippages edged down to 0.15% from 0.16%. Net 90+ day delinquency trends across most retail loan products either stabilized or improved, which the report attributes to tighter underwriting standards, stronger recovery efforts, and a shift toward secured lending.
Gold loans emerged as the fastest-growing segment. Disbursements increased 94% year-on-year, reaching ₹816 thousand crore in the October–December 2025 period, surpassing personal and home loans in the origination mix. Non-banking financial companies recorded 189% growth in gold loans, while public sector banks held the largest market share at 46%.
Personal loan disbursements also rebounded, rising about 34% year-on-year. Public sector banks led growth at 42%, compared with lower growth among private banks. Higher-value personal loans above ₹10 lakh increased their share to 37% over the past two years.
According to the report, more than 85% of live AUM is concentrated among prime and super-prime borrowers with credit scores above 700. Credit cards were the only segment to record a decline in volumes, although asset quality improved, with industry net 90+ delinquency falling to 1.56% from 1.93%.
Aditya B. Chatterjee, managing director at Equifax India, said the market is seeing strong growth alongside improving credit quality but noted that lenders should monitor rising leverage and early signs of stress in rapidly expanding segments.
