Overview
- Formal retail credit penetration rose from about 35% in March 2017 to roughly 74% by March 2026, and the share of credit‑active consumers climbed from 11% to 28%, according to TransUnion CIBIL’s July 2026 report.
- Consumption‑led products — personal loans, credit cards and consumer‑durable loans — now bring the most new borrowers, with mid‑range smartphone finance the single largest source and an average ticket around Rs 38,000.
- The geographic centre of growth moved toward Uttar Pradesh, Madhya Pradesh and Bihar while Maharashtra and Tamil Nadu’s shares moderated, and semi‑urban and rural consumers increased their share of credit activity from 53% to 63%.
- The borrower mix broadened: women rose to about 30% of active borrowers and people under 35 to 39%, even as lenders shift strategy toward deepening relationships with existing customers rather than prioritizing first‑time borrowers.
- Portfolio health remains strong with overall retail delinquencies near 1.3% and personal loan delinquencies under 1%, though the report also flags a rise in over‑leveraged borrowers and a falling share of new‑to‑credit originations that could slow future expansion.