Retail Loan Surge: Gold and Home Lending Propel Growth in December 2025 Quarter

Retail loans surged by 18.1% to Rs 162 lakh crore in December 2025, spurred by a rise in gold lending amid high prices, festivities, and GST changes. Home loans grew 10.5% to Rs 43 lakh crore, while gold loans jumped 44.1%. The outstanding balance in personal loans increased 11.6%.

Retail loans experienced significant growth at 18.1% in the December 2025 quarter, reaching Rs 162 lakh crore, largely due to increased gold lending amid price hikes and festive demand, according to a recent report.

Home loans, a major component of retail loans, rose by 10.5% to Rs 43 lakh crore. Notably, gold loans surged by 44.1% to Rs 16.2 lakh crore, while personal loan outstandings grew by 11.6% to Rs 15.9 lakh crore, CRIF High Mark data revealed.

The GST rationalization further stimulated segments such as auto loans, two-wheeler loans, and consumer durable loans. State-owned banks played a crucial role, contributing over half of the total originations in the third quarter of FY26.