Personal Loans Up 32%: Is Your EMI at Risk?

Personal loans jumped 32% in Q1 FY27, growing faster than home or auto loans. This signals high demand but also rising lender caution — which could mean tighter eligibility and higher interest rates for new borrowers soon.

Here's what happened: Personal loans surged 32% year-on-year in Q1 FY27, making them the fastest-growing retail credit segment in India.. Home loans remain the largest credit category in absolute volume, while consumer durable and two-wheeler loans are also seeing steady expansion.. The rapid growth in unsecured personal loans signals a consumption-led borrowing trend, which regulators have historically responded to with tighter norms..

What you should do: Check your CIBIL score now — lenders tightening personal loan norms typically reject applicants below 750 first; knowing your score costs you nothing.. Compare personal loan interest rates across at least 3 lenders before applying, as rates vary by 3–5% and a surge in demand often pushes rates higher.. Avoid stacking a new personal loan on top of existing EMIs if your EMI-to-income ratio already exceeds 40% — lenders flag this as a high-risk profile..

If you already have a personal loan, call your lender and ask for a rate review — high loan volumes give you negotiating leverage if your repayment record is clean.