Personal loans grew 35 percent year-on-year, compared with just 9 percent growth in 2024, driven largely by short-term, small-ticket borrowing, as seen in an analysis by PB Fintech.
Salaried individuals
accounted for nearly 70 percent of personal loan disbursals, highlighting steady income as the key driver of borrowing, the analysis added. The top 10 metro cities contributed 34 percent of total disbursals, led by Delhi and Mumbai.
Home Loans: Younger Indians Buy Earlier
Housing loans grew 12 percent year-on-year in 2025, with younger borrowers playing a bigger role. Around 16 percent of new home loan borrowers were under the age of 30, nearly double the 9 percent share seen in 2022.
The PB Fintech data highlighted that the average home loan ticket size rose to about Rs 37 lakh in 2025, from Rs 29 lakh in 2022. Joint ownership continued to dominate, accounting for 58 percent of home loans, while 42 percent were taken by single borrowers.
Credit Cards: From Spending to Credit Building
Credit card trends in 2025 show a clear shift in behaviour. Issuance of traditional unsecured retail credit cards declined 21 percent year-on-year, compared with a 6 percent decline last year. At the same time, secured credit cards grew strongly by 62 percent.
Younger users drove this change. About 34 percent of new card holders were under 30, while 9 percent were under 25, up from just 3 percent in 2022. First-time borrowers increasingly chose secured cards as a safer way to build credit history. Delhi NCR and Mumbai remained the largest markets, contributing 11 percent and 6 percent of new card issuance, respectively.
