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Bajaj Finance’s personal-loan growth slows below 20% as competition intensifies

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Bajaj Finance’s personal-loan growth slows below 20% as competition intensifies

Bajaj Finance’s personal-loan book is equivalent to the combined personal-loan books of the next nine NBFCs, but several NBFCs and fintech platforms have been scaling up rapidly in the segment over the past few quarters.

Urban personal-loan growth slowed below 20% from Q3FY26 as NBFCs and fintech platforms rapidly scaled up, intensifying competition. Flexi-loan regulations could weigh on Bajaj Finance’s consolidated AUM growth in Q2FY27, with clarity on the RBI’s definition of revolving credit remaining critical. Gold-loan expansion and an expected MSME lending recovery from Q3FY27 could support AUM growth, with FY27 growth estimated at 24-26% in the closing quarter. Net profit estimates have been raised 3% for FY27-29, while the target price has been increased to Rs 1,270 from Rs 1,140, with a Buy rating maintained.

Bajaj Finance ’s urban personal-loan growth has slowed to below 20% from Q3FY26 as elevated competition weighs on momentum, creating a near-term headwind for the NBFC’s overall growth. The pressure, along with regulatory uncertainty around flexi loans, could result in subdued consolidated AUM growth in Q2FY27, although a planned scale-up in gold loans and recovery in MSME lending could support growth later in FY27. Its personal-loan book is equivalent to the combined personal-loan books of the next nine NBFCs , but several NBFCs and fintech platforms have been scaling up rapidly in the segment over the past few quarters. The company’s urban personal-loan growth remained robust for longer after Covid but slowed below 20% from Q3FY26, with elevated competitive intensity identified as the key reason.


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