Indian Economy News

First-time borrowers deepen credit reach: Credit uptake among eligible Indians more than doubled to 74% in March from 35% in 2017

India's formal credit footprint has expanded significantly over the past nine years, according to TransUnion CIBIL's report, "Unlocking Access: Journey of Credit Expansion in India." The proportion of eligible Indians who have taken credit at least once more than doubled from 35% in March 2017 to 74% in March 2026, with India's credit-eligible population rising from 79 crore to 89 crore consumers over the period. Credit-active consumers within this population rose from 11% to 28%, though the compounded annual growth rate moderated from 14% between March 2017-2019 to 9% between March 2024-2026, while the share of New-to-Credit consumers in retail originations declined from 32% to 13%. Mr. Bhavesh Jain, MD and CEO, TransUnion CIBIL, said the past decade saw momentous changes, including demonetisation, GST introduction and UPI adoption, which collectively expanded credit access and financial inclusion.

Consumption credit, including personal loans, credit cards and consumer durable loans, emerged as the most widely held category, with its share among credit-active consumers rising from 34% to 51%, while business-oriented credit saw the sharpest increase, growing tenfold in consumer numbers. Women borrowers increased their share from 22% to 30%, young borrowers from 33% to 39%, and semi-urban and rural consumers from 53% to 63%, with credit growth in Uttar Pradesh, Madhya Pradesh and Bihar outpacing traditional strongholds in the west and south. Over-leveraged borrower originations rose from 5% in FY2017 to 18% in FY2024, before moderating to 15% in FY2026.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.