Gold, Home, Auto And Consumer Durable Loans Bounce Back, But Credit Cards Weak; What Was Revealed In CIBIL Data?

Gold, home, auto and consumer durable loans bounce back, but credit cards weak; What was revealed in CIBIL data?

New Delhi A mixed picture has emerged in India's retail loan market in the September 2025 quarter. According to the Credit Market Indicator (CMI) of TransUnion CIBIL, after last year's decline, home loans, auto loans and consumer durable loans have again seen positive momentum. Although consumer behavior remained weak on an annual basis, it has improved on a quarterly basis.

16% increase in gold loan

According to the report, many segments have made a comeback in loan originations in the September 2025 quarter. While home loans registered a marginal growth of 1% on an annual basis, there was a decline of 6% in the same period last year. An annual growth of 6% was recorded in auto loans and 5% in two-wheeler loans.

Personal loans also continued to grow at 10-11%. The strongest jump was seen in consumer durable loans, where there was a growth of 19% in the September 2025 quarter, compared to a decline of 3% last year. Gold loan also registered a rise of 16%.

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Weakness in credit card segment

However, weakness remains in the credit card segment. A decline of 15% was recorded in credit card loans in the September 2025 quarter, whereas last year also a huge decline of 22% was seen. This shows that banks and NBFCs are still adopting a cautious approach towards unsecured loans.

GST 2.0 was important for economic development

The CMI for consumer behavior remained weak on an annual basis, but showed improvement on a quarterly basis. This index was 106 in September 2024, which fell to 96 in December 2024. After this, after remaining at 95 in March 2025 and 95 in June 2025, it increased to 97 in September 2025. This is a sign that consumer confidence is slowly returning.

Bhavesh Jain, MD & CEO, TransUnion CIBIL, said, "GST 2.0 was a necessary step to accelerate economic growth. Its impact is clearly visible in consumer sentiment and credit demand. But along with maintaining credit growth, it is equally important to promote responsible lending."

What do outstanding balance figures tell?

The outstanding balance figures show that the pace of growth in almost all the products was slower than last year. The annual growth of home loans declined from 14% to 12%, auto loans declined from 21% to 15% and two-wheeler loans declined from 29% to 13%. The biggest slowdown was seen in credit cards and gold loans.

TransUnion CIBIL says that the market remains stable due to increased focus on secured and asset-backed loans. However, this latest improvement in consumer behavior may prove important for credit growth in the coming quarters.

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