According to data released by Transunion Cibil the three states of Maharashtra, Tamil Nadu and Karnataka together accounted for 40% of total retail loans in the country as on June 30.
Retail lending includes auto loans, used car loans, home loans, loans against property, personal loans, consumer durable loans, education loans, credit cards loans and two-wheeler loans.
This, despite the three states representing just 20% of the aggregate national population.
"At the midpoint of 2018, three of the large Indian states Maharashtra, Tamil Nadu and Karnataka comprised nearly 40% of all retail lending balances despite representing about 32% of the overall credit population share and around 20% of the aggregate Indian population," the report said.
Retail balances in Maharashtra were the highest at Rs 5,50,200 crore, representing nearly 20% of all the retail advances in the country. Tamil Nadu followed second at Rs 2,77,400 crore while Karnataka accounted for Rs 2,74,900 crore.
According to Cibil's data, the 10 largest Indian states represented Rs 21,27,400 crore in balances, which comprised almost 76% of the total balance share. The 10 largest balance markets made up 68% of the consumer credit population.
The report said retail lending balances rose by nearly 27% between the second quarters of 2017 and 2018.
Personal loan balances (up 43%) and credit card balances (up 42%) grew at the highest rate of all major credit products in the last year.
Yogendra Singh, vice-president of research and consulting, TransUnion Cibil, said the retail lending sector continues to expand strongly as consumers are seeking credit and lenders are making credit available.
"With delinquency rates generally remaining at controlled levels, this points to a well-functioning consumer credit market," he added.
The report said loans against property was the only product category which witnessed a significant increase in serious delinquency rates, growing by 65 basis points. year-over-year to 3.04% in the second quarter of 2018.
Delinquency rates rose modestly for home loans and credit cards and continued to decline for auto loans, personal loans and two wheeler loans, it added.