Personal loans jump 32% in Q1 FY27: How home, auto and consumer loans compare — and what borrowers should watch

Personal loans are growing much faster than home loans, but home finance remains the much larger credit category. Consumer durable and two-wheeler loans are also expanding. Here’s what the latest credit trends reveal about how Indians are borrowing and what consumers should watch.

If you are considering taking a personal loan for a large purchase, home renovation, wedding, or another expense, the latest credit-market numbers show that unsecured borrowing is growing considerably faster than home loans.

An Experian Industry Insights report reveals that personal-loan sourcing — the value of new loans originated or sanctioned during the quarter — rose 32% year-on-year to ₹3 lakh crore during April-June 2026 (Q1 FY27).

Personal-loan assets under management (AUM), which represent the outstanding loan portfolio, stood at ₹16.2 lakh crore as of June 2026, up 14% YoY.

That compares with home loan AUM of ₹43.6 lakh crore, which grew 13% YoY. So while personal loans are growing faster, the home-loan portfolio remains substantially larger.

Why are personal loans growing faster than home loans?

According to Experian findings, the broader unsecured-credit segment grew 26% YoY in Q1 FY27, making it a significant driver of credit growth. Personal loans and consumer loans contributed significantly, while credit cards showed some resurgence.

Personal loans alone saw 32% growth in new sourcing, compared with the more measured expansion in home loans. For consumers, this suggests that smaller and relatively quicker-to-access forms of borrowing are becoming an increasingly important part of the credit market.

How does personal-loan borrowing compare with home loans?

The difference becomes clearer when looking at portfolio size and ticket values.