Bank borrowing picked up pace in June, with overall credit growth rising to 16.5% from 9.9% a year earlier. At the same time, the weighted average lending rate on outstanding bank credit fell to 9.26% from 9.71%, while nearly two-thirds of outstanding loans carriedbelow 9%, according to the Reserve Bank of India’s latest Quarterly Basic Statistical Return (BSR) report.
The data also shows some notable changes across individual borrowers and locations. Credit to female individual borrowers grew 19.7%, faster than overall bank credit, while personal-loan credit grew 12.7%. Credit growth was above 21% in rural, semi-urban and urban centres, compared with 13.1% in metropolitan centres.
1. The average rate on outstanding bank credit has fallen
The weighted average lending rate (WALR) on outstanding bank credit declined by 45 basis points to 9.26% in June 2026, from 9.71% a year earlier.
The share of outstanding bank credit carrying interest rates below 9% also increased to nearly two-thirds, compared with 54.1% in June 2025.
The 9.26% figure covers outstanding bank credit across scheduled commercial banks. It is not the average rate for a specific retail product such as a car loan or personal loan.
2. Credit to female borrowers is growing faster
Credit to female individual borrowers increased 19.7% year-on-year in June 2026, compared with 12.9% a year earlier.
The growth was higher than the 16.5% increase in overall bank credit and the 15.2% growth in household-sector credit.
The BSR-1 separately reports credit to female individual borrowers and credit under the personal-loan category.
3. Personal loans are growing at a slower pace
Credit under the personal-loan category grew 12.7% year-on-year in June 2026.
This was below the 16.5% growth in overall bank credit. Credit to the finance sector grew 22.4%, trade credit increased 18.1%, industrial credit rose 15.5% and agricultural credit grew 15.1%.
The RBI data covers credit across these different sectors and categories separately.
4. Credit growth is stronger in non-metro centres
The pace of credit growth was above 21% in rural, semi-urban and urban centres.
Credit in rural areas grew 21.1%, compared with 12.8% a year earlier. Semi-urban credit grew 21.6%, up from 11.8%, while urban credit increased 21.4%, compared with 12.7% a year earlier.
In metropolitan centres, credit growth stood at 13.1%, compared with 8.2% a year earlier.
5. Working-capital loans are growing faster than term loans
Working-capital loans grew 18% year-on-year in June 2026, compared with 13.4% a year earlier.
Term loans grew 15.4%, up from 8.3% a year earlier, and accounted for 64.1% of total outstanding bank credit.
Among bank groups, credit growth was 17.3% for public sector banks, 20.5% for private sector banks, 14.8% for foreign banks and 25.1% for small finance banks.
The June 2026 BSR-1 data covers changes in rates and credit growth across borrower categories, loan categories and population centres, providing a detailed snapshot of bank credit during the month.