According to TransUnion CIBIL’s Credit Market Indicator Report, the credit market improved in Q3 FY26. Demand was boosted by GST rate cut and festive season spending, while loan supply was boosted by a sharp increase in gold loans as gold prices rose. Lenders improved property quality through a shift toward higher ticket loans, experienced borrowers, and those with stronger credit scores, resulting in fewer defaults.Crime has declined in most retail areas. Unsecured categories including credit cards, personal loans and consumer durables saw improvement, while secured segments like home loans and auto loans also reported lower defaults. There has been a steady decline in personal loan defaults since September 2025, while home loan defaults remained stable at a low level of 0.7% to 0.8%.Relatively high stress levels are visible in some sections. Commercial vehicles recorded delinquency levels of around 2%, construction equipment stood at 1.2%, and micro loans against property remained high at around 3%, although these levels remained stable.Commenting on the outlook for Q4FY26, Jain said demand has “normalised” in January and February 2026, following the festive season. Early January delinquency rates continued to improve, suggesting credit market indicators could strengthen further in the final quarter of the fiscal year.In the retail loan market, gold loans account for about one-third of all new loan originations. As gold prices doubled, gold loan ticket sizes increased by 1.8 times.