India's formal retail credit usage more than doubles in ten years

TransUnion CIBIL reports that the proportion of Indians accessing formal retail credit rose from 35% in March 2017 to 74% in March 2026, while the credit-eligible population expanded from 790 million to 890 million. The share of consumers actively using credit grew from 11% to 28%, reflecting stronger engagement with the financial system. Consumption-driven lending, including personal loans, credit cards and consumer-durable financing, has become the main growth engine, pushing the share of borrowers holding such products from 34% to 51%.

Younger borrowers now favor small unsecured loans for electronics and gadgets rather than large asset-backed loans. Credit growth shifted geographically toward northern and central states like Uttar Pradesh, Madhya Pradesh and Bihar, while traditional markets in Maharashtra and Tamil Nadu moderated. The borrower base also broadened to include more women, sub-35-year-olds, and residents of semi-urban and rural regions.