Neither home nor auto—this is the loan people are taking the most; the money is disbursed instantly..

The Reserve Bank has made a startling revelation in its recent report. The RBI noted that neither auto loans nor home loans are witnessing rapid growth in the country; instead, people are increasingly opting for a different type of loan. A major reason for the popularity of this loan is the absence of paperwork or long waiting times; one simply visits a branch, and the funds are instantly credited to the account.

The RBI reported that loans against gold jewellery provided by Non-Banking Financial Companies (NBFCs) surged by 69 percent in June, reaching ₹3.42 lakh crore. This figure stood at ₹2.02 lakh crore a year earlier, marking the fastest growth among all major loan segments. In June 2024, the figure was ₹1.44 lakh crore. Retail loans remained the primary driver of overall credit growth for NBFCs. Retail credit recorded a year-on-year growth of 20.3 percent in June 2026, compared to 14.3 percent during the same period the previous year.

**Outpacing Home and Auto Loans**
The RBI stated that the retail loan category—comprising home loans, auto loans, and loans against gold jewellery—saw robust growth, sustaining the momentum of consumer credit. Meanwhile, credit extended for agriculture and allied activities grew by 17.9 percent year-on-year in June 2026, up from 5.1 percent in the corresponding period of the previous year.

**Slowdown in Industrial Credit**
RBI data indicates a deceleration in the pace of credit disbursement to the industrial sector during this period. Growth in this segment was recorded at 6.7 percent in June 2026, down from 10.3 percent a year earlier. The primary reason for this was a slowdown in credit to the infrastructure sector, which accounts for the largest share of industrial credit. Credit growth by NBFCs to the services sector also moderated to 17.6 per cent, down from 22.4 per cent in June 2025. This slowdown was primarily driven by sluggish credit growth to operators in the trade and transport sectors. However, credit growth in the commercial real estate sector remained robust.

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