India’s Credit Demand Remains Resilient – Experian’s Latest Credit Insights

MUMBAI:
Experian, a leading global data and technology company, today released its latest Credit Insights, March 2025, offering a comprehensive view of India’s evolving credit ecosystem. The insights highlight sustained growth in credit demand across secured and unsecured products, shifts in lender dynamics, and early indicators of asset quality stabilisation.

As of March 2025, Industry Assets Under Management (AUM) stood at Rs.121 lakh crore, reflecting a 21% year-on-year (YoY) increase and a 4% quarter-on-quarter (QoQ) rise. Fresh disbursals during the quarter reached Rs.16 lakh crore, up 10% YoY and 8% QoQ, largely driven by continued growth in gold loans, business loans, and loans against property (LAP).

The secured lending landscape witnessed a surge, with loans accounting for 32% of originations by count in Q4 FY25. The segment also witnessed stable average ticket sizes at Rs. 1.7 lakh, indicating consistent borrower behaviour and healthy credit appetite.

Unsecured lending remained strong, with the portfolio growing 9% QoQ, led by a 22% QoQ rise in the business loan portfolio. Personal loans continued to dominate the unsecured segment in both volume and value. Overall, both personal loans and gold loans are showing a shift towards higher ticket sizes.

Credit card disbursals, however, showed a declining trend in Q4 FY25, with a 2% QoQ reduction in the credit card sourcing. This may indicate a shift in consumer spending patterns or cautious issuer sentiment. Rising delinquencies in credit card and two-wheeler loans continue to warrant monitoring.

Lender dynamics also shifted during the quarter. Public Sector Banks (PSBs) increased their share in home and gold loans, while Non-Banking Financial Companies (NBFCs) strengthened their presence in the LAP and used car loan segments. NBFCs also expanded their footprint in unsecured lending, particularly in personal and consumer durable loans.

Commenting on the insights, Manish Jain, Country Managing Director of Experian in India, said, “India’s credit ecosystem continues to evolve against the backdrop of digitalisation, changing consumer aspirations, and a robust financial infrastructure. Our latest Credit Insights underline the structural depth of this demand, especially in secured lending and small-ticket personal loans, pointing to both growing consumer confidence and responsible borrowing.”

“As the landscape grows more complex, the need for timely, actionable insights becomes even more essential. At Experian, we remain committed to supporting the ecosystem with intelligence that enables informed decisions, fosters financial inclusion, and contributes to building a more sustainable and responsive credit economy.” He added.

Key Highlights:

1. Home Loans
   AUM stood at Rs.38.5 lakh crore as of March 2025, reflecting a 15% YoY growth.
   Net 90+ delinquency remained stable at 0.2%, indicating strong credit performance
   Public sector banks (PSBs) increased market share in disbursal from 42% to 49% YoY in Q4 FY25, reinforcing their strong momentum in the segment.
2. Credit Card:
   AUM stood at Rs. 4.7 lakh crore as of March 2025, reflecting a 29.3% YoY growth.
   Credit cards are facing a consistent decline in issuance, indicating signs of changing consumer behaviour.
   Net 90+ delinquency reduced to 2%, maintaining growth but face persistent delinquency pressure.
3. Personal Loan:
   AUM stood at Rs. 15 lakh crores as of March 2025, reflecting a dip of 12% YoY.
   Although there is some stress in the personal loan portfolio, due to policy refinement we are seeing encouraging signs of improvement in early delinquency trends.
   Private sector banks (PVT) increased their market share in disbursals from 28% to 30% YoY in Q4FY24
4. Loan Against Property (LAP)
   AUM rose to Rs. 12 lakh crores, marking 24% YoY growth, reflecting a strong demand in the secured lending space.
   Net 90+ delinquency reduced to 0.3%, reflecting improved repayment trends
   NBFCs and housing finance companies (HFCs) increased market share from 48% to 50% YoY in Q4 FY25.
5. Gold Loans
   Gold loan continues its growth trajectory with AUM rose to Rs. 8 lakh crores in March 2025, reflecting 50% YoY growth.
   Net 90+ delinquency remained low at 0.1%, showcasing strong borrower repayment behavior.
   Public sector banks (PSBs) increased market share from 39% to 41% YoY in Q4 FY25.
6. Auto Loans
   AUM for auto loans reached Rs.8.1 lakh crore in March 2025, reflecting an 18% YoY growth.
   Net 90+ delinquency remained at 0.3%, a slight uptick during the same period.
   Private banks and NBFCs maintained a steady market share, demonstrating continued confidence in auto loan financing.

The Experian Credit Insights serves as a strategic tool for lenders, providing a granular view of product-level trends, borrower behaviour, and risk dynamics. Through advanced analytics and real-time insights, Experian continues to empower the financial ecosystem with intelligence to support informed, data-driven lending decisions.