India's Lending Boom: 2025 Sees Strong Growth, 2026 Outlook Positive Amid Rate Cuts

• India's consumer lending sector showed resilient growth in 2025, driven by falling interest rates, policy support, and disciplined borrower behavior.
• Retail credit grew 17% YoY to ₹144 lakh crore, with housing loans up 12%, personal loans 9%, and auto loans 15%.
• RBI's 125 bps rate cuts significantly improved loan affordability, especially for housing, with lending rates on fresh loans falling by 0.73%.
• Digital platforms and embedded finance emerged as key growth drivers, enabling faster, data-driven underwriting and reduced friction.
• Experts predict continued retail credit growth in 2026, advising borrowers to prioritize financial stability and leverage refinancing opportunities.

Why It Matters: India's consumer lending saw robust 2025 growth, fueled by rate cuts and digital tech, with a positive 2026 outlook.