Gold loans drive 42% surge in secured lending in Q3FY26: Experian

Experian data shows secured loans growing 42% in Q3FY26, led by strong demand for gold loans, even as unsecured lending rebounded and home loans maintained steady momentum

Secured loans sourced during October–December FY26 (Q3FY26) grew 42 per cent year-on-year (Y-o-Y), compared with 20 per cent growth in the year-ago period, driven largely by gold loans amid rising gold prices, according to an Experian report. At the same time, unsecured loans registered 24 per cent Y-o-Y growth in Q3FY26, reversing an 11 per cent decline in the corresponding quarter last year.

 

Personal loans and consumer loans saw higher demand during the festive season, the report showed. 

Total new loans sourced in Q3FY26 stood at Rs 20 trillion, marking a 36 per cent increase over the year-ago period. 

 

Among secured products, gold loan assets under management (AUM) rose 48 per cent Y-o-Y to Rs 10.6 trillion as on December 31, 2025. The sourcing value of gold loans surged 89 per cent Y-o-Y to Rs 6.5 trillion in Q3FY26. Demand was particularly strong for small-ticket loans, typically below Rs 3 lakh, while net delinquencies remained among the lowest across product categories.

 

Non-banking financial companies (NBFCs) gained nearly 14 percentage points in market share based on sourcing value, reaching close to 39 per cent in Q3FY26. Public sector banks saw their share decline to 33 per cent from 43 per cent in Q3FY25.

 

Home loans continued to witness steady growth, supported by healthy credit discipline. AUM in the segment reached Rs 41 trillion at the end of December 2025, up 11 per cent Y-o-Y. State-owned banks gained three percentage points in market share to 51 per cent in Q3FY26. Private banks, meanwhile, increased their focus on loans above Rs 80 lakh, which accounted for 33 per cent of their portfolio as of December 2025.

 

Public sector banks gained share in secured products, particularly auto and home loans. NBFCs continued to dominate retail segments, with a strong presence in consumer and two-wheeler loans.

 

“The lending ecosystem in India is showing strong momentum, supported by steady demand, a growing preference for secured loans, and improving repayment behaviour. Products such as gold loans and home loans are increasingly helping borrowers meet financial needs in a more sustainable manner,” said Manish Jain, country managing director, Experian India.

 

The unsecured loan segment, which had recorded an 11 per cent Y-o-Y decline in Q3FY25, rebounded with 24 per cent growth in Q3FY26, aided by festive demand for personal and consumer loans. However, credit card issuances continued to decline, even as the average ticket size (ATS) rose, indicating a sharper focus on premium customers.

 

“At the same time, we are seeing a healthy balance between growth and risk management. Better credit assessment and responsible lending are playing an important role in improving overall portfolio quality. Timely data and insights remain critical in supporting this progress,” Jain added.