In March 2017, 35% of India’s credit-eligible consumers had taken formal credit at least once. By March 2026 the figure was 74%. That is the headline of a new TransUnion CIBIL report, and it arrived while the eligible population itself grew from 79 crore to 89 crore.
Taking a loan once is one thing. Keeping it up is another, and here the gain is smaller but still large: credit-active consumers rose from 11% to 28%.
Consumption did the heavy lifting. Personal loans, credit cards and consumer durable loans are now the usual way into the system. The share of credit-active consumers holding such products went from 34% in 2017 to 51% in 2026, and the number of those borrowers grew nearly fourfold.
“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,” said Bhavesh Jain, MD and CEO of TransUnion CIBIL. Younger borrowers, he added, appear to prefer mobile phones to two-wheelers and vehicles.
Where the growth went
The map has shifted too. Credit growth has moved away from the traditional strongholds in western and southern India and toward northern and central states. Uttar Pradesh’s share of the credit-active population climbed from 8% to 11%, Madhya Pradesh’s from 4% to 6%, and Bihar’s from 3% to 5%. Maharashtra and Tamil Nadu saw their shares moderate, though both remain among the largest credit markets.
Women, consumers under 35, and semi-urban and rural borrowers are also taking part in greater numbers.
Sources
- Formal retail credit access doubles over past decade
- India Formal Retail Credit Access Doubles in a Decade | Atul Singh, FRM posted on the topic | LinkedIn
