·       The proportion of eligible Indians who have taken credit at least once has more than doubled from 35% in March 2017 to 74% in March 2026, with credit monitoring[1] jumping from 1% to 35% between March 2018 and March 2026

·       Credit growth is being driven by women, younger borrowers and non-metro regions with growth in Uttar Pradesh, Madhya Pradesh, Bihar outpacing that of traditional strongholds of the west and south

·       Study shows significant opportunity to bring more New-To-Credit (NTC) consumers as well as NTC commercial entities into the formal credit fold

Mumbai, India, 30 July 2026: India’s formal credit footprint has expanded significantly over the past nine years reveals TransUnion CIBIL’s new report, Unlocking Access: Journey of Credit Expansion in India. The report presents a study from March 2017 to March 2026 on how formal credit access has widened and how participation within the ecosystem has deepened through greater demographic diversity and credit awareness.

India’s credit-eligible[2] population increased from 79 crore in 2017 to 89 crore consumers in 2026. Of this group, the share of ever-credited[3] consumers, i.e., those who have accessed retail credit at least once, more than doubled from 35% in March 2017 to 74% in March 2026, demonstrating the wide progress and penetration of formal credit in India in the last few years.

The proportion of credit-active[4] consumers within the credit-eligible[5] population also increased during this period, from 11% in March 2017 to 28% in March 2026. However, the compounded annual growth rate of the credit-active consumer base moderated from 14% during the March 2017–March 2019 period to 9% during March 2024–March 2026 period. At the same time, the share of New-to-Credit (NTC) consumers in retail originations declined from 32% in March 2017 quarter to 13% in the March 2026 quarter. These numbers indicate significant opportunity to both deepen engagement with those already within the credit fold, and to bring new consumers into the formal credit ecosystem.

Chart 1: Overview of India’s Retail Credit Access March 2017 vs March 2026

(Data for 2017 calculated basis the borrower base in March 2017, while data for 2026 is based on the borrower base of March 2026.)

Mr. Bhavesh Jain, MD and CEO, TransUnion CIBIL, said, “The past decade has been a defining one for India’s credit ecosystem. In the 2016-17 period, the country saw momentous changes in the form of demonetization, the introduction of GST and the rapid adoption of Unified Payment Interface (UPI). Over the course of the decade, regulators, banks and lenders, NBFCs, fintechs, Credit Information Companies, technological advances and the digital public infrastructure collectively expanded pathways to credit. The COVID-19 pandemic accelerated adoption of digital tools. Cumulatively, these developments are believed to have contributed to increased access to credit and financial inclusion, while enabling lenders to make more informed and timely credit decisions.”

Borrower Wallets Shift Towards Lifestyle-Driven and Entrepreneurial Credit

The deepening of borrower engagement was accompanied by a marked change in the composition of credit wallets, with consumers showing a clear preference for consumption and entrepreneurial credit.

Consumption credit[6], comprising personal loans, credit cards and consumer durable loans, emerged as the most widely held category. The share of credit-active consumers holding consumption products increased from 34% in March 2017 to 51% in March 2026, while the number of consumers holding these products grew fourfold in the same period.

Business-oriented credit[7] recorded an even sharper increase, with the share of credit-active consumers holding these products rising from 3% to 9%, while their number grew tenfold – registering the fastest expansion among the categories studied. In comparison, while gold loan[8] participation increased from 19% to 22%, growth in vehicle loans[9] and mortgage products[10] remained stable.

Chart 2: Changing Product Preferences March 2017 vs March 2026

(Data for 2017 calculated basis the credit-active borrower base in March 2017, while data for 2026 is based on the credit-active borrower base of March 2026.)

Mr. Jain added, “The changes in wallet composition point to how credit is being increasingly seen as a means to drive a lifestyle-driven approach today, compared to the asset-based approach seen a decade ago. Credit dispersion has travelled a long way thanks to consumption loans. At the same time, the sharp increase in business loans by individuals points to increased use of credit by individuals for entrepreneurial activity. This creates a great opportunity for lenders to take a holistic view of individual proprietors and their business together as part of their lending strategies.”

A More Diverse Borrower Base Expands Credit Participation

The widening of formal credit access was accompanied by a change in the composition of India’s credit-active population. Women borrowers increased their share from 22% in March 2017 to 30% in March 2026, while that of young borrowers[11] rose from 33% to 39% in the same period. The share of consumers from semi-urban and rural regions (SURU) went up from 53% to 63%.

Within these expanding segments, younger consumers from semi-urban and rural regions in particular increased their share from 47% to 61%. Among women, the share with more than five years of retail credit experience increased from 29% to 43%, while semi-urban and rural credit-active women consumers went up to 64% in March 2026, compared to 57% in March 2017.

As credit participation widened, the share of over-leveraged borrowers[12] originations increased from 5% in FY 2017 to 18% in FY 2024 before moderating to 15% in FY 2026. The study noted that industry action helped stem the increase over the last two years. Higher leverage was largely concentrated among high-momentum demographic groups such as younger consumers.

While expansion of the borrower base has led to wide credit penetration in the last nine years, rise in credit awareness has added depth to the credit landscape. From nearly non-existent credit monitoring in March 2018, the proportion of credit-active consumers who monitor their credit saw a big jump to 35% in March 2026[13]. The share of credit-experienced consumers[14], i.e., those with a longer credit history, increased from 38% to 54%.

Among the biggest findings of the study is the changing geographic credit inclusion map of India. A state-wise analysis of credit uptake reveals that growth in northern and central India has outpaced that of western and southern India between 2017 and 2026. Maharashtra and Tamil Nadu, seen as traditional strongholds of credit uptake, remained among the country’s largest credit markets, although their respective shares moderated from 12% to 10% and from 11% to 9%. On the other hand, Uttar Pradesh increased its contribution from 8% in March 2017 to 11% in March 2026, Madhya Pradesh rose from 4% to 6%, Bihar from 3% to 5%, and West Bengal from 4% to 5%.

Chart 3: Re-writing of India’s Credit Inclusion Map

(Data for 2017 calculated basis the credit-active borrower base in March 2017, while data for 2026 is based on the credit-active borrower base of March 2026.)

“Two factors have led to the strong growth of credit in India in the last decade – greater demographic diversity and credit awareness. The former has enabled expansion of the borrower base by bringing in newer demographic segments into the credit fold. The latter has added depth by allowing consumers to remain there and use credit as a means to fulfil life goals. Women are clearly becoming more financially aware, engaged, and driving sustainable inclusion. Thanks to digitization and heightened credit awareness, credit maturity among women borrowers has been impressive. For younger borrowers, mobile phones rather than two-wheelers and vehicles appear to be products of choice, as this mobile phone-native generation sees them as productivity tools.

“What also stands out is how India’s state-wise credit heatmap has undergone a gradual but clear shift. While the traditionally dominant states in west and south India continue their strong credit uptake, states in north and central India have seen a remarkable rise in credit participation. Our aspiration of Viksit Bharat depends in large measure on such a pan-India balance in credit growth, with more and more consumers moving from informal to formal credit”, Mr. Jain explained.

Expansion in Commercial Borrower Base Creates Further Headroom for Growth

Moving from consumer to commercial, the identified credit-eligible commercial entity base increased from 6.3 crore in March 2021 to 8.7 crore in March 2026. In the same period, the share of proprietorship and partnership-driven enterprises went up from 70% to 88%, low-risk entities[15] rose from 13% to 37% and credit-experienced entities[16] from 30% to 40%.

However, the share of entities that have accessed commercial credit declined from 50% to 41%, the credit-active share dipped from 10% to 9% and NTC also went down from 60% to 39% between quarter ended March 2021 and quarter ended March 2026. This indicates further capacity to bring eligible enterprises and medium, small and micro entrepreneurs into formal credit.

Mr. Jain added, “There are some big positives in the commercial story. The rise in proprietorships and partnerships indicates that individuals are now taking more business loans which in turn means increasing credit penetration at the grassroots level. The increase in the number of entities rated as low-risk points to the success of credit guarantee schemes in supporting borrowers. At the same time, the overall numbers suggest that the wide expansion in the MSME borrower base in the last five years has led to significant opportunity to onboard more commercial entities, especially those that are NTC, and to deepen engagement.”

Chart 4: Diversified Commercial Growth with Enhanced Access & Improved Quality

(Data for 2021 calculated basis the borrower base in March 2021, while data for 2026 is based on the borrower base of March 2026.)

“In essence, what this long-view study of India’s credit growth tells us is that the last decade was a defining one for the country. The last decade is the one in which India’s credit ecosystem came of age. If, at the start of this decade, the credit landscape was fragmented and collateral-led, then by the end of the decade, it had become diversified, data-driven, digitally enabled, and increasingly disciplined. As credit penetration and credit awareness deepened, the central question for many borrowers moved from ‘Can I access credit?’ to ‘How far can credit take me?’

“Looking ahead, there may be significant opportunities to build further on this strong period of credit expansion. By extending engagement with credit-active consumers, and tapping into new-to-credit consumers and commercial entities, our credit ecosystem can ensure balance between scale and quality of credit participation as we continue our journey of a credit-fit India” Mr. Jain concluded.

About TransUnion CIBIL

India’s pioneer credit information company, TransUnion CIBIL, ensures the credit history of each person and business entity is reliably represented.

We have developed technology and innovative solutions across core credit, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences, and personal empowerment for millions of people and MSMEs in India.

We serve the financial sector as well as commercial entities and individual consumers. Our customers in India include banks, credit institutions, NBFCs, housing finance companies, microfinance companies, telecom companies and insurance firms.

For more information visit www.transunioncibil.com

[1] Credit monitoring are consumers who monitored their credit with TransUnion CIBIL in the one year preceding the period end. Studied here from March 2018 to March 2026.

[2] Credit-eligible is the total adult population aged between 18 to 60 as of period end

[3] Ever-credited are consumers who have ever availed a retail loan as of period end

[4] Credit-active consumers are those who have at least 1 retail loan with balance or limit reported on the portfolio date

[5] Credit-eligible is the total adult population aged between 18 to 60 years as of period end based on population estimate from the World Bank database.

[6] Consumption loans include personal loans, credit card and consumer durable loans

[7] Business Oriented refers to business loans given to individuals, construction equipment loan and commercial vehicle loan

[8] Gold includes gold loans and PSL-gold loans

[9] Vehicle refers to passenger vehicle loans like auto loans and two-wheeler loans

[10] Mortgage includes housing loan and property loan

[11] Younger consumers are aged less than 35

[12] Leverage consumers are those classified under segment 4 and 5 based on proprietary leverage segments developed by TransUnion CIBIL

[13] Credit monitoring are consumers who monitored their credit with TransUnion CIBIL in last one year from period end.

[14] Credit Experienced are consumers who have been in the retail bureau for more than 5 years

[15] Low Risk - CIBIL Commercial Rank (1-3).

[16] Credit Experienced are entities who have been in the commercial bureau for more than 4 years

Mumbai, India, 24 September 2025 – India’s retail credit market saw a cyclical shift marked by contrasting trends in consumer demand and portfolio performance during the quarter ended June 2025. While credit demand from younger consumers (aged 18–35) declined during the quarter, semi-urban and rural regions continued to demonstrate resilience, with demand rising in these geographies.

According to TransUnion CIBIL’s September 2025 Credit Market Report, the growth in loan originations  for younger consumers slowed to 6% in the quarter under study, compared to 9% in the same period last year. This slowdown was cushioned to some extent by a robust 9% YoY growth in loan origination volumes from rural and semi-urban regions, reflecting stable consumption patterns outside metro areas.

These trends contributed to a lower Credit Market Indicator (CMI)¹ of 98 for the first quarter of the 2025-26 financial year in comparison with same period for the previous financial year. The CMI is a comprehensive measure of data elements that are summarized monthly to analyse changes in credit market health, categorized under four pillars: demand, supply, consumer behaviour, and performance. These factors are combined into a single, comprehensive CMI indicator, and pillars can also be viewed in more detail individually. A higher CMI reading indicates improving credit market health, while a lower reading indicates a decline.

Chart 1: Credit Market Indicator (CMI) June 2022 – June 2025

“India’s credit landscape is evolving with resilience in semi-urban and rural demand, a strategic shift toward secured lending, and stable portfolio performance. These trends signal a maturing market focused on sustainable and inclusive growth,” said Mr. Bhavesh Jain, MD & CEO, TransUnion CIBIL.

Retail Credit Demand Impacted by Tapered Demand from Younger Consumers

The slowdown in demand from younger consumers led to the CMI for demand falling to 92 for the quarter ended June 2025, down from 95 the same time last year.

The share of demand from young consumers (age 18-35 years) as a percentage of total demand fell to 56% in the June 2025 quarter, compared to 58% in same period a year ago. Demand is measured as enquiry volumes.

Personal loans, consumer durable loans and gold loans remained popular among this age group, while credit cards saw a YoY decline. The overall decline in supply was especially visible in metro and urban geographies, where the share of young consumers in loan originations has decreased by 3% over the last two years. Supply is measured as originations by lenders.

Chart 2: CMI Demand June 2022 – June 2025

Younger consumers often start their credit journey with products that offer convenience, like personal loans, consumer durable loans, or credit cards. As they progress through life stages, there tends to be a natural shift toward secured, long-term credit options that better suit their evolving needs.

“The recent dip in credit demand from this segment may reflect a more cautious mindset. While this may be temporary, it is a reminder of how important it is to equip young borrowers with the right tools and support to help them grow confidently along their credit journey,” said Mr. Jain.

Semi-Urban and Rural Regions Continued to Demonstrate Growth

In comparison, semi-urban and rural geographies continued to show robust growth, with a 9% YoY increase in originations for the quarter ended June 2025, indicating deepening credit penetration and resilience in non-metro consumption. The most significant originations growth, by 15% YoY, was in personal loans – a greater growth rate than those seen for other leading products in these geographies such as gold loans (7% YoY) and consumer durable loans (9% YoY).

Lenders have an opportunity to tap into resilient pockets of growth, particularly in semi-urban and rural regions, where credit demand continues to hold strong. By tailoring products and outreach to these markets, and by nurturing responsible credit behavior among younger consumers, lenders can drive inclusive and sustainable growth.

Retail Credit Growth Remains Flat Across Most Products

The CMI for credit supply remained unchanged at 93 for the quarter ended June 2025. Origination volumes growth was flat for key products, except personal loans, which saw 12% YoY growth, and gold loans, which saw 8% YoY growth.

Home loan origination volumes also grew, by 2% YoY, compared to a 3% YoY decline for the same period a year ago. In value terms, home loan originations increased by 6% YoY in the quarter ended June 2025, marginally higher than the 5% YoY in the quarter ended June 2024.

For two-wheeler loans, origination volumes fell by 1% YoY in the quarter ended June 2025, in contrast to a 15% YoY growth in the same period a year ago, while in value terms two-wheeler originations saw a slower growth of 3% YoY compared to a growth of 21% YoY in the same period a year ago.

Chart 3: CMI Supply June 2022 – June 2025

Similar to credit demand, the share of semi-urban and rural consumers in loan originations also saw a marginal one percentage point YoY increase to 61% for the quarter ending June 2025.

In its June 2025 monetary policy, the Reserve Bank of India (RBI), announced a 50 basis point (bps) cut in the repo rate—higher than market expectations. As the repo rate serves as the benchmark for banks and financial institutions to set their lending rates, this reduction translates into lower interest rates on both retail and commercial loans. Furthermore, the central government’s decision to streamline GST slabs to 5% and 18%, for most commodities, down from the previous ranges of 5% to 40%, will reduce the cost of a wide array of commodities—from essential goods to vehicles.

The recent rate cuts combined with the reduction in Goods and Services Tax (GST) rates and increased demand due to the upcoming festive season, are expected to boost consumer spending and stimulate lending momentum.

Lenders Tilt Towards Secured Lending as Risk Appetite Evolves

Portfolio balances grew at a slower pace of 18% YoY in the quarter ended June 2025, compared to 25% YoY a year ago. While this deceleration was visible across all product segments, it was more pronounced for unsecured products such as personal loans (8% YoY), consumer durable loans (8% YoY) and credit cards (12% YoY).

As a result of slower growth in unsecured products, the credit active consumer base saw a slower growth of 9% YoY during the quarter ended June 2025, compared to 15% YoY in the quarter ended June 2024. This has led to the CMI for consumer behaviour declining to 94 in the quarter ended June 2025, compared to 111 for the same period last year.

The outstanding balances of secured products continued to grow by double digits, although all at a slower pace than in the same quarter a year ago, with the most significant growth being for loans against property, which increased by 23% YoY, and gold loans, which increased by 26% YoY.

Table 1: Outstanding Balances YoY Growth

As portfolio growth moderates, the strategic pivot towards secured lending, highlighted by the robust performance of loans against property, reflects a conscious effort by lenders to drive credit expansion while managing risk. This signals a maturing credit environment where sustainability and stability are prioritized over volume growth.

Stable Portfolios with Pockets of Stress Requiring Focused Oversight

Overall retail credit balance-level delinquencies across higher-balance products remained stable, indicating sound portfolio health. This led to the CMI for performance improving to 104 in the quarter ending ended June 2025, compared to 101 in the quarter ending ended June 2024.

Among consumption products, personal loans continue to demonstrate YoY improvement in 90+ days past due (DPD) performance. Credit card delinquencies rose 19 basis points (bps) YoY although they have remained range-bound over the past four quarters, suggesting relative stability despite the slight uptick.

Certain other loan segments, too, have seen a rise in 90+ DPD delinquencies. These include two-wheeler loans (up 20 bps YoY), unsecured business loans (up 42 bps YoY), and commercial vehicle loans (up 50 bps YoY). Together they account for 6% of the industry portfolio.

“Proactive portfolio monitoring in certain segments such as two-wheeler loans, unsecured business loans and commercial vehicle loans along with strengthening risk frameworks, is essential for inclusive growth,” said Mr. Jain.

__________________________________________________________________________________

1. The TransUnion CIBIL Credit Market Indicator (CMI) is an evolving model which is regularly reviewed to ensure the most relevant variables and their relative weighting are selected to best chart the credit health of India’s lending market. When selecting certain variables, year-on-year movements are analysed to remove the effects of seasonality. The CMI is not a stationary index; hence the level in itself is not indicative of credit health. The CMI number needs to be looked at in relation to the previous period(s) and not in isolation. A lower CMI number compared to the prior period represents a decline in relative credit health, while a higher number reflects an improvement.

2. Delinquency rates are measured as percentage of balances in 90 to 719 days past due respectively for home loan, property loan; 90 to 359 days past due for commercial vehicle loan; and 90 to 179 days past due respectively for other products. Excludes Asset Reconstruction Companies.

__________________________________________________________________________________

Disclaimer: This Information above is based on the TransUnion CIBIL Credit Market Indicator Report of June 2025. TransUnion CIBIL does not guarantee the adequacy or completeness of the information and/or its suitability for any specific purpose. TransUnion CIBIL shall not be responsible for any reliance on the Information. The reader should carry out all the necessary analysis that is prudent in their opinion before making any decisions.

About TransUnion CIBIL

India’s pioneer information and insights company, TransUnion CIBIL, makes trust possible by ensuring each person and business entity is reliably represented in the marketplace. We do this by providing an actionable view of consumers and businesses, stewarded with care.

We have developed technology and innovative solutions across core credit, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences, and personal empowerment for millions of people and MSMEs in India.

We serve the financial sector as well as MSMEs and individual consumers. Our customers in India include banks, credit institutions, NBFCs, housing finance companies, microfinance companies, telecom companies and insurance firms.

For more information visit www.transunioncibil.com

·       Younger consumers continued to drive credit demand

·       Consumers in previously unserved and underserved geographies increasingly embraced credit, made possible by digital adoption

Mumbai, India 2^nd February, 2023 – TransUnion CIBIL today released findings from the latest edition of its Credit Market Indicator (CMI)* report, which shows that credit demand in the third quarter ending September 2022 remained robust, with a corresponding increase in originations as lenders continued to provide credit opportunities for millions of consumers across India. Consumption-led lending fueled growth amid positive lender sentiment, with credit performance showing consistent improvement year-over-year (YoY).

The CMI, which provides India’s credit industry with a reliable and contemporary benchmark of retail lending health, reached a level of 100 in September 2022, with younger consumers driving demand and lenders catering to the supply of credit to these consumers. The latest CMI reports that, for the first time, consumers from the 18-30 year-old age group accounted for the largest proportion of inquiries—a measure of consumers applying for new credit— in the quarter ending September 2022. This trend is underlined by rapid growth in consumption-led credit products like credit cards, consumer durable loans and personal loans.

“The fact that 43% of retail credit inquiries were made by consumers in the 18-30 year old age group, compared to 38% in the same quarter in 2021, and 33% in the year before, indicates a major milestone in the evolution of India’s credit market, which now has stronger participation of younger consumers in the credit ecosystem,” said Rajesh Kumar, Managing Director and CEO of TransUnion CIBIL. “Increased access to credit opportunities for younger borrowers has direct correlation to improvement in the quality of life and financial empowerment of India’s youth, who are the drivers of the country’s economic engine.”

The CMI is a comprehensive measure of data elements that are summarized monthly to analyze changes in credit market health, and are categorized under four pillars: demand, supply, consumer behavior, and performance. These factors are combined into a single, comprehensive indicator, and pillars can also be viewed in more detail individually. The latest CMI of 100 underlines the steady growth in India’s robust retail credit market, despite the uncertain macroeconomic factors such as inflation and interest rates that are negatively affecting economies in developed and developing markets around the world.

                    Chart 1: Monthly CMI (September 2020 to September 2022) ⁱ

i  When selecting certain variables, year-over-year (YoY) movements are analyzed to remove the effects of seasonality. The increase in April 2021 CMI was temporary and driven primarily by an exponential increase in inquiries and originations in April 2021 compared to a lower base of April 2020. Inquiry and origination volumes increased YoY by 8.5 times and 5.2 times respectively in April 2021.

ii The Sept 2022 CMI value is provisional and subject to revision as additional data are reported to the TransUnion CIBIL credit bureau.

Powered by digital channels, lenders driving growth across geographies and consumer segments

The most demanded credit products in the third quarter ending September 2022 were personal loans, followed by credit cards. Inquiry volumes for personal loans increased by 109% YoY, compared to a growth rate of 91% in the same quarter in 2021, while inquiry volumes for credit cards increased by 102% YoY, compared to a growth rate of 33% in the corresponding quarter one year before.

Demand and supply of consumption-led credit products are intrinsically digital in construct. Lenders are swiftly embracing digital processes to reach consumers across India’s geography, providing them access to credit through digital channels.

Analyses of the CMI at a geographic-level shows that credit reach has expanded in regions that were historically underserved. For instance, Uttar Pradesh has shown the strongest improvement in credit health with a CMI value of 102, an improvement of 19 points YoY. Overall loan originations of retail loans in Uttar Pradesh comprised just over a quarter (26%) that were provided to new-to-credit (NTC) consumers. Credit penetration** in Uttar Pradesh is steadily increasing, reaching 13% in the quarter ending September 2022 from 11% during the same period in the previous year. Uttar Pradesh’s share of consumer durable loans has grown to be 9% of all loans of this type across India, which is an increase of five percentage points compared to the same quarter in 2019.

Borrower profiles shift across age groups and location

A continued feature of the retail credit evolution has been increased credit penetration. Over the last three years, between September 2019 and September 2022, credit penetration has improved across age groups. Consumers in the 18-30 years age group who have availed at least one credit product increased from 14% to 19%; in the 31-45 year age group, it increased from 26% to 35%; and from 23% to 32% among the 46+ year cohort.

From a location perspective, most inquiries (31%) still come from metro areas, but this proportion is slowly declining. Conversely, the number of inquiries emanating from rural areas has increased by one percentage point each year, from 20% in September 2020 to 22% of all inquiries in September 2022. Inquiries from urban and semi-urban areas have remained consistent at 21% and 26% respectively over the last three years.

“Growth and demand continue to come from younger consumers, and those who have historically been unable to experience the benefits of financial inclusion due to their location, or their lack of connectivity,” Kumar said. “This is also likely due to an improvement in economic activity that has resulted in a continued growth trajectory for credit demand across India, which is currently at a three-year high.”

Credit supply continues to grow in line with the growth in demand, with semi-urban and rural consumers accounting for 56% of originations, and younger consumers (18-30 years age group) accounting for 37% of originations – an increase of six percentage points YoY.

Analysis of the latest CMI also shows a marked improvement in borrower profiles, with nearly one-third (32%) of consumers holding a prime*** credit score, up four percentage points from the same period in 2021. Over the same time, 38% of near-prime consumers improved their status to prime in Q3 of 2022.

Importantly, while credit demand and outstanding balances increased, credit performance has remained strong, with balance-level delinquencies improving YoY in September 2022 across all major credit products. This is a clear indicator of sustainable and profitable growth for lenders.

YoY Growth in Outstanding Balances (September 2022)

 “It is encouraging to see how innovative solutions made possible by technology are extending financial inclusion to diverse populations across the country, particularly in areas that previously were less able to access financial services and credit solutions,” concluded Kumar.

#ENDS

* The TransUnion CIBIL Credit Market Indicator (CMI) is an evolving model which is regularly reviewed to ensure the most relevant variables and their relative weighting are selected to best chart the credit health of India’s lending market. When selecting certain variables, year-on-year movements are analyzed to remove the effects of seasonality.

** Credit penetration is the percentage of credit active population to the total adult population.

*** Credit Tiers based in CIBIL Score range: subprime: 300-680, near Prime: 681-730, prime: 731-770, prime plus: p771-790, super prime: 790+.

·       Increased credit awareness seen in GenZ² consumers with 2.9X growth seen in October 2021 to September 2022 compared to the previous 12 months

·       88% increase in self-monitoring women consumers recorded between October 2021 and September 2022 compared to the previous 12 months 

·       96% increase in self-monitoring consumers in non-metro locations between October 2021 and September 2022, compared to a 58% increase in metro locations

·       68% of self-monitoring consumers own two or more active credit accounts, compared to 33% non-monitoring consumers that hold the same number of accounts

Mumbai, November 29, 2022 – A new report by TransUnion CIBIL titled “CIBIL FOR EVERY INDIAN” released today provides a comprehensive insight into the credit behavior of self-monitoring consumers across India, including that the number of consumers monitoring their credit profile for the first time grew by 83% between October 2021 and September 2022. Since TransUnion CIBIL started its direct-to-consumer service in 2009, 61.1 million consumers have self-monitored their own credit profile. It also reveals that 23.8 million consumers registered for self-monitoring for the first time between October 2021 and September 2022, and that 71% (representing 16.8 million consumers) of this growth came from non-metro locations registering for the first time.

Source: TransUnion CIBIL database

Commenting on the findings of the report, the Managing Director and CEO of TransUnion CIBIL, Mr. Rajesh Kumar, said, “With over 61.1 million self-monitoring¹ consumers, we can see that Indians are beginning to take a more active role in monitoring their own credit information and understanding their credit health. The emergence of digitization, smartphones, and internet penetration into semi-urban and rural areas, have all improved access to credit exponentially.”

“The end consumer is the largest beneficiary of this evolution as the power is shifting to them as they are now able to access multiple financial opportunities at competitive terms, across the financial ecosystem. Improved consumer awareness bodes well for the market as it catalyzes competitive pricing of credit products and services by lenders, access to affordable credit opportunities for end consumers, and financial inclusion in the economy.” Mr. Kumar added.

The report shows that there has been a notable improvement in the ways Indians are monitoring their credit, especially those in non-metro locations who accounted for over 76% of the overall number of new-to-credit⁴ consumers between October 2021 and September 2022.

The TransUnion CIBIL data also shows positive results driven by younger consumers – evident through the 2.9X growth in Gen Z consumers monitoring their credit between October 2021 and September 2022, compared to the same period in the previous year. This is an indicator that more Indians are not only understanding credit management better, they are utilising it at a younger age.

Credit awareness directly proportional to credit discipline

The report finds that consumers are becoming more credit conscious, with results showing that nearly 47% improved their credit profiles (CIBIL Scores) within six months of checking their CIBIL Score and Report. Thirty-five percent of self-monitoring consumers opened a new credit line within three months of monitoring, compared to just 6.2% of non-monitoring consumers.

The report also shows that within three months of checking their score, 46% of self-monitoring consumers applied for new credit and 36% opened a new credit line. This suggests that there is a correlation between consumers monitoring their scores and an intent to purchase, with those consumers using their scores to avail lower interest rates, better offers or even a higher credit amount. Of the new accounts opened within three months of monitoring, 49% were personal loans, 14% were consumer loans, 9% were Gold Loans and 9% were Credit Cards.

Non-metros emerging as growing credit-active markets with year-over-year consumer growth of 71% in 2022

Showcasing the trend of increased credit-consciousness, the report highlights that 69% of the newly registered self-monitoring consumers with a CIBIL Score⁵ of 730+ (considered to be prime and above) between October 2021 and September 2022 were from non-metros. The report also shows that most new-to-credit consumers have come from non-metros over the last four years in India, with these areas being home to more than 76% of overall self-monitoring new-to-credit consumers between October 2021 and September 2022.

Source: TransUnion CIBIL database

Self-monitoring women borrowers from non-metro locations increasingly influencing the Indian credit landscape

The consumer credit market in India is evolving as more and more women borrowers take charge of their credit health. The period between October 2021 and September 2022 witnessed an 88% growth in the number of women self-monitoring compared to the previous 12 months. The report highlights 2.2X growth in number of self-monitoring women consumers with a score of 730+ between October 2021 and September 2022, compared to October 2021 to September 2022:

·       Out of the women consumers who began monitoring their own profile between October 2021 and September 2022, 62% were from non-metro locations.

·       With a 3.4X increase, Gen Z self-monitoring women have shown massive growth between October 2021 and September 2022, compared to the same period in the previous year.

Source: TransUnion CIBIL database

Young Indians emerging as vigilant borrowers

Gen Z consumers have shown significant growth in their self-monitoring behavior over the last few years, representing 29% of new self-monitoring consumer between October 2021 and September 2022. The report shows that nearly 23.8 million Millennials³ began monitoring their credit profiles in this period, registering a growth of 83% compared to the same period in the previous year:

·       There was a 2.9X growth in Gen Z consumers who actively monitored their credit profiles between October 2021 and September 2022

·       Together, Millennials² and Gen Z³ formed 94% of new-to-credit consumers between October 2021 and September 2022 

“Our report insights show that emerging youth and women consumers from non-metro geographies are exhibiting increased credit consciousness. Providing access to credit opportunities for this consumer segment will be critical for furthering the consumption led growth of India’s economy,” concluded Mr. Kumar.

¹Self-monitoring consumers are users who have proactively checked their CIBIL Score & Report at least once with TransUnion CIBIL.

²Gen Z are consumers born 1997 to 2012.

³Millennials are consumers born 1981 to 1996.

⁴New-to-credit – credit vintage up to 6 months

⁵ CIBIL Score ranges from 300-900. Score tiers are: subprime = 300-680, near prime = 681-730, prime = 731-770, prime plus = 771-790, and super prime = 791-900.