With reference to the latest data on loan outstandings in India, consider the following statements: 1. Credit to the services sector saw a growth of 18.2% to Rs 63 lakh crore. 2. Personal loan outstanding has reached Rs 72.9 lakh crore. 3. Gold loans saw a growth of 83.2% reaching Rs 5.6 lakh crore. Which of the statements given above is/are correct?

Data released on Wednesday showed personal loan outstanding at Rs 72.9 lakh crore

GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims· 1 October 2026

Credit expansion and shifting credit patterns: a GS3 and banking sector stability case study.

Why in news

Data released on Wednesday revealed a significant rise in personal loan outstandings to Rs 72.9 lakh crore, highlighting shifting credit patterns in the Indian economy.

Background

Personal loan outstanding reached Rs 72.9 lakh crore. Housing loans grew 11.1% to Rs 35.6 lakh crore, while gold loans saw a massive 83.2% growth to Rs 5.6 lakh crore. Credit to the services sector saw the highest growth among sectors at 24.3% to Rs 63 lakh crore.

Facts for Prelims

FactPersonal loan outstanding: Rs 72.9 lakh crore
FactHousing loan growth: 11.1% to Rs 35.6 lakh crore
FactGold loan growth: 83.2% to Rs 5.6 lakh crore
FactCredit to services sector: Rs 63 lakh crore (24.3% growth)
FactCredit to industry: Rs 45.8 lakh crore (18.2% growth)

Prelims practice question

With reference to the latest data on loan outstandings in India, consider the following statements:

Credit to the services sector saw a growth of 18.2% to Rs 63 lakh crore.
Personal loan outstanding has reached Rs 72.9 lakh crore.
Gold loans saw a growth of 83.2% reaching Rs 5.6 lakh crore.

Which of the statements given above is/are correct?

(a)2 only
(b)1 and 2 only
(c)1 and 3 only
(d)2 and 3 only

Show answer

Answer: (d) 2 and 3 only — Statements 2 and 3 are correct. Statement 1 is incorrect: The growth for the services sector was 24.3%.

For Mains

Q. Analyze the implications of rising personal and gold loan outstandings on the stability of the Indian banking sector and household debt-to-income ratios.

Dimensions to cover in your answer

Asset quality risk: Potential for rising Non-Performing Assets (NPAs) in unsecured personal and gold loan segments
Sectoral credit imbalance: Rapid credit expansion in services vs. slower growth in agriculture and industry
Monetary transmission: Impact of high household debt on domestic consumption and interest rate sensitivity

Keywords: Credit expansion · Non-Performing Assets · Debt-to-income ratio · Monetary policy · Asset quality · Sectoral credit

Read the full news →Report a mistake in this note Source: Economic Times ↗

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