TransUnion CIBIL India Credit Expansion Report

According to TransUnion CIBIL's "Unlocking Access: Journey of Credit Expansion in India" report, formal credit access expanded significantly between March 2017 and March 2026. The proportion of eligible Indians who have taken credit at least once more than doubled from 35% to 74%, while the credit-eligible population grew from 79 crore to 89 crore consumers. During this period, credit-active consumers within this base rose from 11% to 28%, even as compounded annual growth moderated from 14% (March 2017–2019) to 9% (March 2024–2026) and the share of New-to-Credit consumers in retail originations dropped from 32% to 13%. TransUnion CIBIL MD and CEO Bhavesh Jain noted that structural shifts like demonetization, GST, and UPI adoption were instrumental in expanding access and financial inclusion over the decade. Borrowing trends shifted noticeably toward consumption and business loans, alongside broader demographic inclusion. Consumption credit—comprising personal loans, credit cards, and consumer durable loans—became the most widely held product category, increasing its share among active consumers from 34% to 51%, while business-oriented credit experienced a tenfold jump in consumer numbers. Borrowing demographics diversified as the share of women borrowers rose from 22% to 30%, young borrowers from 33% to 39%, and semi-urban and rural consumers from 53% to 63%, with credit expansion in Uttar Pradesh, Madhya Pradesh, and Bihar outpacing traditional southern and western markets. Meanwhile, originations among over-leveraged borrowers grew from 5% in FY2017 to peak at 18% in FY2024, before easing to 15% in FY2026.