Graphic of the day: Unsecured credit pivots

Banks target higher-yield personal loans to protect margins as SBI Research shows FY25 share stabilizing

By
Samreen Wani
Last Updated: Jan 23, 2026, 15:16 IST1 min
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Indian banks are selectively increasing unsecured lending to counter margin pressures from policy rate cuts. According to SBI Research, unsecured loans’ share of total credit rose from 16.9 percent in FY16 to a 25.5 percent peak in FY23, before moderating to 24.5 percent in FY25 following the 2023 regulatory clampdown.
Indian banks are selectively increasing unsecured lending to counter margin pressures from policy rate cuts. According to SBI Research, unsecured loans’ share of total credit rose from 16.9 percent in FY16 to a 25.5 percent peak in FY23, before moderating to 24.5 percent in FY25 following the 2023 regulatory clampdown.

First Published: Jan 23, 2026, 15:18

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Samreen Wani
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