Moneymood 2025

Retail lending grew by 16% to ₹5.2 trillion, slightly slower than last year’s 18%. Secured loans led the way: home loans, the largest retail lending category, rose by 18% (up from 14% last year), and gold loans surged 56%, marking the fastest growth across all categories. 

Credit Cards Break Records 

Outstanding cards reached 106 million, with monthly spends touching ₹2 trillion. Despite regulatory tightening and rising delinquencies, credit card debt grew 17% (vs 28% last year). With less than 6% of Indians owning a card, this underpenetrated segment remains poised for strong growth. 

Personal and Auto Loans Slow Down 

Unsecured credit faced challenges, especially small-ticket loans under ₹50,000 to sub-prime borrowers. However, larger loans to prime and super-prime borrowers continued to grow and are expected to perform well in coming years. 

SIPs > FDs 

The gap favoring SIPs over FDs among salaried Indians widened to 5%, the highest on record. SIPs offer better returns, flexibility, and liquidity, while we observed a declining preference for life insurance, postal schemes, crypto, and even direct equity investments. 

Coverage Declines 

Although more Indians reported health coverage, there was a dip in those with both life and health insurance. Alarmingly, the proportion of respondents without any coverage nearly doubled. 

We hope you find this year’s report insightful. From all of us at BankBazaar, we wish you a prosperous 2025.