Personal loan distribution rises at fastest pace than other loans:Credit card issuance declines 28% during April-Sept 2025 as compared to the previous financial year

There has been a major change in loan trends for homes, vehicles and other consumer needs in the country between April-September. According to JM Financial’s report, consumption-based bank loans have increased after the slowdown in the last financial year. Loans have increased in almost all segments except credit cards. These are positive signs for the next financial year. In 6 months from April to September, all consumer loans except credit cards saw an annual increase of 6% to 23%. Meanwhile, in 2024-25, this growth was between -3% to 11%. Personal loans increased 35% in July-September In the unsecured loan category, personal loans have increased the most. In the first half of the current financial year, personal loan distribution increased by about 23%, while in the July-September quarter it increased by 35% annually. Consumer durable loan disbursement related to TV, refrigerator, mobile and other consumer goods increased from 3% last fiscal year to 19% in the July-September quarter. In this category, the market share of private banks also increased. Meanwhile, sluggishness continued in the credit card segment. In April-September, new cards issued were 28% lower than a year ago. Personal Loans Rise 23% in the First 6 Months of FY26 Source: JM Financial Only those with strong financial position are borrowing The increase in personal loans does not directly mean that people don’t have money to spend. It indicates more that consumption is increasing, but the way of spending is changing. First, these loans are not being taken for small and emergency expenses. Banks and financial institutions are giving more personal loans of larger amounts. This means only those people are borrowing who have stable income, secure jobs and strong credit history.