India’s credit demand continues to remain resilient, supported by rapid digitalisation, rising consumer aspirations, and a robust financial infrastructure, according to a report released on Tuesday.
As of March 2025, industry Assets Under Management (AUM) stood at ₹121 lakh crore, reflecting a 21% year-on-year (YoY) growth and a 4% quarter-on-quarter (QoQ) increase, Experian, a global data and technology company, said in its report.
Fresh disbursals during the quarter touched ₹16 lakh crore, up 10% YoY and 8% QoQ, driven largely by sustained growth in gold loans, business loans, and loans against property (LAP).
“India’s credit ecosystem continues to evolve against the backdrop of digitalisation, changing consumer aspirations, and a robust financial infrastructure,” said Manish Jain, Country Managing Director, Experian India.
“Our latest Credit Insights underline the structural depth of this demand, especially in secured lending and small-ticket personal loans, reflecting both growing consumer confidence and responsible borrowing,” he added.
The secured lending segment saw a significant rise, with loans accounting for 32% of originations by count in Q4 FY25. Average ticket sizes remained stable at ₹1.7 lakh, indicating consistent borrower behaviour and a healthy credit appetite.
Unsecured lending also remained strong, with the portfolio expanding 9% QoQ, led by a 22% QoQ jump in the business loan category. Personal loans continued to dominate the unsecured segment in both volume and value, with a noticeable shift towards higher ticket sizes alongside gold loans.
Credit card disbursals, however, showed a decline in Q4 FY25, with a 2% QoQ drop in sourcing.
In terms of lender performance, public sector banks (PSBs) increased their share in home and gold loans, while non-banking financial companies (NBFCs) strengthened their presence in LAP and used car loan segments. NBFCs also grew their market share in unsecured lending, particularly in personal and consumer durable loans.
“As the lending landscape grows more complex, the need for timely, actionable insights becomes even more critical,” Manish noted.
– IANS
