A slowdown in home loans pulled down overall growth in the personal loan category in November 2025. For the month, the personal loan segment reported 12.8% year-on-year (Y-o-Y) growth, down from 13.4% in November 2024. Compared to the previous, the growth was slower.
Housing Market Cooling
In October 2025, the personal loan segment recorded 14% growth. The housing segment reported a to 9.9% growth in November 2025 to Rs 31.95 lakh crore from 12.2% growth a year ago. Rising delinquencies in small-ticket loans, the cooling of the housing market, and a decline in banks’ direct assignments have been key factors in the decline in lending to the housing segment, analysts said.
Slowing growth in credit cards and consumer durables also contributed to the slowdown in the personal loan segment. The credit card segment witnessed a sharper decline, reporting growth of 2.4% from 18.1% a year ago, despite lower non-performing assets. According to the recent financial stability report released by the Reserve Bank of India, the gross NPA ratio in the credit card segment lowered to 1.8% as of September 30, 2025, from 2% in March 2025. Analysts said banks are just being cautious as they reduce their exposure to unsecured loans.
Loans in the consumer durables segment contracted by 5.9% in November 2025, contrasting with a 5.1% increase a year earlier. “Post the goods and services tax reforms, the segment did see an uptick, however, things are coming back to normal now,” said Prakash Agarwal, Partner at Gefion Capital.
Gold and Vehicle Loans
If not for the substantial jump in bank credit to vehicle and gold loans, the growth in personal loans would have been lower by 360 basis points at 9.2% in November 2025. Bank credit to vehicle loans was up 12.4% on year to Rs 6.80 lakh crore, and loans against gold jewellery continued to double its growth, surging 125% to Rs 3.58 lakh crore in November.