Unsecured loans, which are not backed by collateral and command higher yields, are increasingly being positioned as a buffer. The ICICI Bank management said it is looking to grow its cards and personal loans portfolios from current levels, even as competition remains intense. For personal loans, banks said fresh sourcing remains largely limited to salaried customers to safeguard credit quality. For the banking sector, the share of unsecured loans in gross advances declined for the second consecutive year to 24.5% as of March 2025. Personal loans grew 8.9% year-on-year to ₹16.3 trillion as of the end of November 2025, slower than 11.2% the previous year.

Source: Mint January 22, 2026 15:26 UTC