Led by PSU banks, large-ticket personal loans grow over 37% in value in Q2: report

Retail credit momentum in India remained firm through the second quarter of FY26. This trend was supported by a continued shift toward secured lending, rising demand for large-ticket loans, and stronger participation from PSU Banks and NBFCs.

The study, ‘How India Lends - Q2 FY26’ by CRIF High Mark, shows that gold loans were the fastest-growing category. Meanwhile, home and auto loans rebounded sharply with the start of the festive season. In contrast, consumer-durable loans and two-wheeler loans softened quarter-on-quarter due to seasonal factors.

Personal loans

Large-ticket personal loans ( ₹10 lakh and above) now represent the largest share of total originations by value. This segment accounted for 37.4% of the originations' value in Q2 FY26, up from 30.2% in Q1, indicating significant growth. PSU Banks primarily drove this expansion.

Meanwhile, most other ticket size segments saw a decline in share. The ₹10L+ category now represents the largest share of total originations by value.

Small size loans (under ₹1 lakh) account for only 17% of the total originations value, but make up nearly 90% of the originations volume, underscoring the dominance of NBFCs in small-ticket personal lending, along with the rising influence of FinTechs.

PSU Banks significantly increased their market share from 26.9% in Q1 FY26 to 35.5% in Q2 FY26, likely driven by strong demand. Concurrently, the share of private sector banks fell from 28.2% to 24.7%, and that of NBFCs dropped from 41.0% to 37.0% during the same period. However, NBFCs still dominate by volume, accounting for over 90% of total originations volume.

Bhargavi Sridharan, Head of Aditya Birla Capital Digital, noted, “The personal loan ecosystem is entering a new phase where growth and granular risk intelligence are both crucial. Digital platforms now leverage bureau data, behavioural analytics, and real-time monitoring to adjust lending strategies. As the FinTech sector matures, these firms are evolving into responsible stewards, matching customer centricity and innovation with portfolio resilience.”

Fastest-growing segment

Gold Loans: This segment remained the fastest-growing. Portfolio outstanding was up 35.8% YoY and 8.6% QoQ. Originations value rose 53% YoY and 1.2% QoQ to ₹604.7 crore in Q2 FY26. Average Ticket Size (ATS) increased to ₹1.64 lakh, and asset quality strengthened across PSU banks, private banks, and NBFCs.

Personal Loans: Portfolio outstanding grew 12% YoY and 2.9% QoQ. This was supported by a sharp recovery in originations to ₹2.92 lakh crore (+32% QoQ). As noted, large-ticket loans (above ₹10 lakh) expanded to 37.4% of origination value, driven by PSU banks, while NBFCs still dominate small-ticket volumes ($\sim 90\%$).

Sachin Seth, Chairman, CRIF High Mark and Regional Managing Director for CRIF India and South Asia, commented, “The credit ecosystem shows resilience and discipline. We are seeing healthy demand for home, auto, and gold loans, as well as improved credit card outstanding balances with strong performance metrics across lenders. These findings reaffirm that India’s retail credit cycle remains stable, driven by the shift towards secured lending and responsible underwriting. The How India Lends report is designed to decode these changes and equip policymakers with actionable intelligence.”

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