India’s credit demand remained strong in Jan-Mar

Fresh disbursals reached $182.61b during the period, according to Experian.

Credit demand in India remains strong in Jan-Mar 2025 or Q4 FY2025 period, according to Experian’s Credit Insights report released on 12 August.

As of March 2025, the credit industry’s assets under management (AUM) reached $13.93t (Rs.1221 lakh crore), up 21% compared to the same period a year earlier and higher by 4% compared to the quarter before that.

Fresh disbursals during the quarter reached $182.61b (Rs.16 lakh crore), up 10% from a year ago and 8% from the previous quarter, on the continued growth of gold loans, business loans, and loans against property (LAP).

Secured loans accounted for 32% of originations by count in the Q4 period.

Unsecured lending portfolio grew 9% in Q4 compared to the Q3 FY2025 period. This was led by a 22% quarterly increase in business loans.

Meanwhile, personal loans continued to dominate the unsecured segment in both volume and value. Overall, both personal loans and gold loans are showing a shift towards higher ticket sizes, said Experian.

“India’s credit ecosystem continues to evolve against the backdrop of digitalisation, changing consumer aspirations, and a robust financial infrastructure,” said Manish Jain, Country Managing Director of Experian in India.

“Our latest Credit Insights underline the structural depth of this demand, especially in secured lending and small-ticket personal loans, pointing to both growing consumer confidence and responsible borrowing,” Jain said.

(US$1 = INR87.63; as of 13 August 2025, Google)