The share of loans bearing interest rates below 9% increased to 54.1% in June 2025, from 43.2% in the previous year

PTI New Delhi

Growth in bank credit to industries declined to 7.6 per cent in June 2025 from 11.3 per cent a year ago while the personal loans segment continued to grow faster than overall advances, according to RBI data released on Friday. The Reserve Bank data also showed that bank credit growth decelerated to 9.9 per cent in June 2025 from 15 per cent in June 2024.

The share of loans bearing interest rates below 9 per cent increased to 54.1 per cent in June 2025, from 43.2 per cent in the previous year, with the easing of policy rates, the central bank said. "In line with monetary policy actions, the weighted average lending rate (WALR) on outstanding credit declined by 39 basis points (bps) during April-June 2025, with reductions observed across all major sectors," RBI said.

Personal loans continued to grow faster than overall credit, gradually increasing their share to 32 per cent of total credit by June 2025; within personal loans, housing loans accounted for more than half."Industrial credit growth (y-o-y) declined to 7.6 per cent in June 2025 from 11.3 per cent a year ago; its share in total credit declined marginally to 23.3 per cent in Q1: 2025-26 from 23.8 per cent a year ago," it said.

Further, the share of individuals in total credit rose to 47.2 per cent in June 2025, up from 46.5 per cent in June 2024. Growth in credit to female borrowers continued to outpace that of males, lifting women's share within credit to individuals to 23.7 per cent from 23.4 per cent in June 2024.