India retail credit expands as unsecured sourcing jumps 26%

Personal loans’ AUM rose whilst credit card AUMs dipped in Q1 FY2027.

India’s credit market industry saw assets under management (AUM) rise 18% year-on-year (YoY) to $1.52t (INR142t) as of June 2026, according to data from Experian.

Both unsecured and secured lending products saw expansion, with unsecured lending accounting for the majority of the retail portfolio value, Experian said in a report published on 8 October 2026.

Unsecured lending was a “significant growth driver” with sourcing volumes rising 26% YoY in the Q1 FY2027 period spanning April to June 2026.

Personal loans and consumer loans reportedly contributed significantly to the growth rate, Experian said.

Personal loans AUM rose 14% YoY to $167.35b (INR16.2t) in June, whilst credit cards AUM dipped 0.1% YoY to $32.54b (INR3.15t).

Consumer durable loans rose 37% YoY to $11.36b (INR1.1t), with its new loans sourcing value growing by 36% YoY.

Home loans are expected to maintain stable growth momentum, with AUM growing  by 13% YoY to INR43.6t for the quarter. Average ticket sizes grew to INR3.48m in Q1 FY2027 from INR32.2m in Q1 FY2026.

(US$1 = INR 96.81; as of 9 October 2026)