IGI Logo

Experian, a global data and technology company, today released its latest Credit Insights - Unsecured Loans, September 2025, offering a detailed view of India’s evolving unsecured lending landscape across personal loans, credit cards, two-wheeler loans, and consumer durable loans. The findings indicate sustained growth in unsecured credit demand, supported by stable portfolio performance and improving early-stage delinquencies across key products.

Fresh sourcing of loans in Q2 FY26 remained strong, driven by increasing ticket sizes, expanding participation from NBFCs, and strengthened borrower repayment behaviour. India’s unsecured credit environment is maturing, with lenders adopting more refined underwriting practices and consumers demonstrating healthier credit discipline. Growth in mid- and high-ticket borrowing reflects rising consumption and confidence, while improvements in early delinquencies suggest stronger portfolio resilience. These trends also highlight the impact of digital lending adoption, improved credit access in semi-urban/ Tier 3/ Tier4 markets, and a broader shift toward more structured and transparent borrowing.

Commenting on the insights, Manish Jain, Country Managing Director of Experian in India, said: “We are witnessing a meaningful shift in India’s unsecured lending space. Demand continues to rise, consumers are moving towards higher ticket sizes, and repayment behaviour is steadily improving. The improvement in early delinquencies across products shows that both consumers and lenders are making more responsible, informed choices, indicating positive trends towards a mature credit ecosystem.”

“Experian’s scores, attributes and insights offer a clear, data-led view of these shifts, helping financial institutions assess risk effectively and expand credit access responsibly. As the market evolves, we will continue to equip lenders with trusted data, advanced analytics and decisioning platforms designed to support transparency, inclusion and compliance.” he added.

 Key Highlights:

 1. Personal Loans

• AUM increased to Rs.15.9 lakh crore, up 13% YoY as of Sep’25.
• All lender categories (private sector banks, public sector banks, NBFCs) reported stronger YoY growth in fresh sourcing.
• NBFCs continued to increase their share, particularly in small ticket-size (< Rs. 1 lakh) loans.
• Increase observed in average ticket size compared to the previous quarter.
• Early-stage delinquency levels improved compared to last year.

2. Credit Cards:

• AUM increased to Rs. 3.4 lakh crore, up 9% YoY as of Sep’25.
• Fresh sanctioned limit witnessed 13% QoQ growth after three quarters of decline; YoY remains marginally lower (~1%).
• Top 4 players dominate credit card AUM, with portfolio share rising from 70% to 72% YoY
• Average credit limits have increased across banks and financial institutions
• Net 90+ delinquency improved from 2.0% to 1.8% YoY as of Sep’25.

3. Two-Wheeler Loans:

• AUM increased to Rs. 1.8 lakh crore, marking 18% YoY growth as of Sep’25.
• Sanctioned amount of new loans increased by 9% YoY in Q2 FY26.
• NBFCs hold a strong market share in the two-wheeler loans segment, driven by higher sourcing from NTC customers.
• Higher-ticket loans (Rs. 1–2 lakh) continued to gain share.
• Net 30+ delinquency reduced from 6.2% to 5.4% YoY, although net 90+ continues to remain elevated.

4. Consumer Durable Loans

• AUM increased to Rs. 1 lakh crore, marking 16% YoY growth as of Sep’25.
• Sourcing of new loans grew by 22% YoY, the fastest among unsecured products.
• NBFCs continued to dominate consumer durable loan sourcing due to strong retail penetration.
• Loans below Rs. 20,000 accounted for ~65% of loan volume.
• Portfolio delinquency has shown marked improvement, demonstrated by a decline in both Net 30+ and Net 90+ rates.

The Experian Credit Insights – Unsecured Loans provides lenders with a comprehensive, data-led view of consumer credit behaviour and emerging risk patterns. By leveraging Experian’s analytics, credit intelligence, and deep industry expertise, financial institutions can enhance decision-making, strengthen portfolio performance, and support responsible credit growth. Experian remains committed to driving financial inclusion and enabling a more transparent, efficient, and resilient credit ecosystem for India.

Above views are of the author and not of the website kindly read disclaimer