In line with knowledge from the lately launched CRIF report ‘How India Lends’, gold loans witnessed a robust 53% year-on-year development in Q2 FY26, supporting the general development in client credit score.
In addition to being the quickest rising mortgage product, gold loans accounted for round 27% of the retail mortgage originations value Rs 2,237.8 crore within the quarter ended September 2026. In line with the report’s knowledge, private loans have been the second quickest when it comes to worth, rising by round 35.4% over the identical interval. Total private lending grew almost 30% yr over yr. Origination worth refers back to the complete quantity approved.
Though sanctioned loans elevated, the share of loans to first-time credit score clients (NTC) decreased for all merchandise besides gold loans, and the share remained stagnant in Q2 FY26 in comparison with the identical interval final yr. Two-wheeler loans continued to account for the most important share of NTC loans at 34.4%, down from 39.5% in the identical interval final yr.
Auto loans and residential loans grew by 13.6% and 14.3%, respectively, on an origination foundation, however NTC buyer penetration remained at 12.5% and 11.7%, respectively, indicating declining demand in these sectors.
From an asset high quality perspective, the portfolio prone to default between 31 and 180 days decreased barely to three.4% within the quarter ended September 2025, in comparison with 3.7% in the identical interval final yr.
The authors of the report additional highlighted that the alarming 31-90 day arrears have been highest among the many cohort with mortgage quantities between Rs 75,000 and Rs 100,000.
“Demand for dwelling loans, auto loans and gold loans is robust, and bank card balances are bettering, together with improved efficiency metrics throughout all lender sorts,” Sachin Seth, chairman of CRIF Highmark and regional managing director of CRIF India and South Asia, stated in a press release.
