Clipped from: https://www.thehindubusinessline.com/money-and-banking/big-ticket-retail-loans-gain-momentum/article70446850.ece
Housing loan above ₹1 crore, car loans of ₹15 lakh and above, two-wheeler loans of ₹3 lakh and above see good growth
Demand for higher-ticket retail loans seems to be gaining ground, especially in Tier-I and Tier-II cities, with banks seeing good offtake of housing loans of ₹1 crore and above, car loans of ₹15 lakh and above, two-wheeler loans of ₹3 lakh and above, among others, per trends gleaned by a Credit Information Company (CIC).
“A big behavioural change is happening, both from the borrower and lender side. The retail loan market is moving towards premiumisation (higher-ticket loans),” Bhavesh Jain, MD & CEO, TransUnion CIBIL, said.
He noted that banks are comfortable with this development, focusing more on existing-to-credit (borrowers having credit history) and existing-to-bank customers (those with existing relationship with a bank).
TransUnion CIBIL, which provides credit information solutions to lenders and insurance firms, was incorporated in 2000 and started its credit bureau operations in 2004.
“There is a certain amount of comfort to go after an existing-to-credit (credit-tested borrower) and an existing-to-bank customer,” Jain said. He emphasised that the fact that customers are treading towards higher retail loan ticket sizes is also a reflection of their sentiments.
“Housing loan above ₹1 crore is growing faster than the regular home loan…There is good demand for SUVs and MPVs, which cost above ₹15 lakh…Within the two-wheeler category, motorcycles with a price tag of ₹3 lakh and above is the fastest-growing segment,” the TransUnion CIBIL chief said.
The CIC’s latest credit market indicator (CMI) report highlighted that small-ticket housing loans (ticket size between ₹2 lakh–₹25 lakh) have shown a slight uptick in delinquencies among recent originations. So, the faster growth in higher-ticket housing loans should be seen in this backdrop.
In the case of home loans, Jain observed that state-owned banks, post-COVID, have been growing their housing loan book via the balance transfer (BT) route, besides organic growth.
“For example, if a home loan borrower, with a credit score above, say, 730 (prime borrower), has a home loan running for three years with a housing finance company. So, this borrower not only has an established credit history, but also a collateral. Since the credit score is very comforting, a bank will approach the customer for a BT,” he said.
The CMI report underscored that Goods and Services Tax (GST) rationalisation and the festive season boosted retail credit demand, particularly for consumer durable, auto and two-wheeler loans.
As lenders respond to this momentum, maintaining a balance between credit expansion and responsible lending will be critical to sustaining long-term financial health, it added.
Published on December 28, 2025
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