Indias Securitization Market Hits Record High of ₹1.47 Lakh Crore in H1 FY 2027
Indias securitization market reached a record ₹1.47 lakh crore in H1 FY 2027, driven by gold loans and vehicle financing.
New Delhi, October 12 (Daily Kiran) : A recent report reveals that India’s securitization market achieved a remarkable milestone in the first half of the fiscal year 2026-27, reaching a total volume of ₹1.47 lakh crore. This figure represents an impressive 42 percent increase compared to the same period last year.
According to ICRA, the second quarter saw a significant surge in activity, with securitization volume soaring to ₹86,000 crore. This growth is largely attributed to rising demand in the gold loan segment, improvements in vehicle loan securitization, and sustained interest in MSME and business loan portfolios.
One of the primary drivers behind this surge is the increased reliance of non-banking financial companies (NBFCs) on securitization to meet their funding needs. The report highlights that gold loans have emerged as the biggest contributor to this growth, with their securitization volume nearly doubling year-on-year in the first half of FY 2027.
Sachin Jogalekar, Vice President and Co-Group Head of Structured Finance Ratings at ICRA, noted that traditional segments such as vehicles, MSME, and mortgage loans have also shown steady growth, bolstering the overall volume. He stated that the robust performance in the first half supports ICRA’s forecast that the total securitization volume for the fiscal year could reach a new record of between ₹2.6 lakh crore and ₹2.7 lakh crore.
While gold loans accounted for the most significant growth, vehicle loan securitization has also regained some of its lost market share. In the first half of FY 2027, vehicle loans constituted nearly one-third of the total securitization volume, up from approximately 25 percent in the first quarter. The report indicates that some lenders have re-entered this market, while others have increased their sales volume in the second quarter.
Following gold and vehicle loans, mortgage loans, small business loans, and microloans were other key asset categories, collectively contributing between 12 to 15 percent of the total volume in the first half of FY 2027.
In terms of transaction structure, the securitization market maintained an almost equal share between pass-through certificates (PTCs) and direct assignments (DAs), mirroring trends from the previous quarter. The report concludes that strong demand in sectors like gold loans, vehicle loans, and MSME financing, along with the growing funding needs of NBFCs, is likely to continue fueling the securitization market in the months ahead.
