Where Does India's Money Flow?
India's banks deploy over ₹184 lakh crore in credit. Personal loans - at 33% of total credit - have overtaken industry. Zoom in and the personal loan category itself doubled from 29L Cr to 59L Cr in four years, with credit cards growing the fastest at 122%.
33%
Personal Loans Share
59L Cr
Personal Loans Total
21%
Industry Share
+122%
CC Growth (4yr)
Credit by Sector (FY2021-Jun 2025)
Personal Loan Breakdown
Personal loans are 1.5x industry credit
At ₹61.5 lakh crore, personal loans are 1.5x total industrial credit (₹39.3L Cr). The gap has widened every single year since FY 2020-21. Banks find retail lending more profitable and less risky than large corporate exposures.
Services is the fastest growing sector
Services credit grew 12.4% YoY (Mar 2024 to Mar 2025) - the fastest among all sectors - reaching ₹51.3 lakh crore. NBFCs, commercial real estate, and trade are driving this.
Housing is half of personal loans at 52% share
Housing loans grew from 15 lakh crore to 31 lakh crore (+106%). It remains the single largest personal loan category, driven by urbanization and government housing incentives.
Credit card outstanding grew 122% - the fastest
Credit card outstanding more than doubled from 1.3 lakh crore to 2.9 lakh crore. This reflects both card adoption (110M+ active cards) and higher revolving balances as consumers use credit for everyday spending.
"Other personal loans" - the RBI's concern
The "other personal loans" category - unsecured personal loans, fintech lending, buy-now-pay-later - grew from 7.6L Cr to 15.4L Cr (+102%). The RBI has flagged this segment for supervisory attention and raised risk weights.
Agriculture: growing but losing share
Agriculture credit grew 10.4% YoY to ₹23.1L Cr - healthy growth in absolute terms. But its share of non-food credit is just 13%, the smallest of the four sectors.