Data released by the RBI on 30 September 2026 shows bank credit growing at its fastest pace in years. For borrowers, a credit boom is a double-edged signal: banks are keen to lend, but regulators and lenders also tighten checks.
The numbers
| Segment (31 Aug 2026) | Growth, year on year | Year-ago |
|---|---|---|
| Non-food credit | 18.8% | 10.2% |
| Personal loans | 16.9% | 11.9% |
| Services | 24.3% | – |
| Industry | 18.2% | – |
| Housing and vehicle loans | Double-digit | – |
HDFC Bank's Q2 FY27 update, for example, reported average advances up 14.1%, deposits up 16.8% and a net interest margin of 3.16% (against 3.26% earlier), with gross NPA at 1.11%.
What it means for borrowers
- Competition for good borrowers. Lenders chase salaried and self-employed applicants with strong credit profiles; ask for rate and fee concessions.
- Deposit pressure. Loans growing faster than deposits can push banks to compete for deposits, which may influence lending rates.
- Tighter risk checks. Rapid growth can bring stricter income and obligation checks, so keep your documents clean.
- Rate direction. With the repo rate at 5.50% and a calibrated tightening stance, floating-rate loans may keep costing more in coming months.
Borrow responsibly
A useful rule is to keep total EMIs below about 40% of monthly income. A ₹50 lakh, 20-year home loan at 8.75% has an EMI of about ₹44,186; add personal-loan or card EMIs and the ratio can climb quickly.
Tip: avoid funding discretionary spending with high-cost personal debt while carrying a home loan. Compare the full cost, not only the EMI.
Sources
- RBI sectoral deployment of bank credit, released 30 September 2026
- HDFC Bank Q2 FY27 business update, Oct 2026
- Easiloan EMI calculations
This article is for general information only and is not financial, legal or tax advice. Figures are as reported on the date of publication and may change; EMI examples are illustrative, not offers. Please confirm current rates, charges and eligibility with the lender before deciding.