MUMBAI, July 30 — A new report from TransUnion CIBIL shows that the way people borrow money is shifting in a fundamental way. Consumption products — things like personal loans, credit cards, and loans for buying gadgets or furniture — now make up the largest slice of the typical borrower’s wallet. Think of it like this: not long ago, most people borrowed to buy a home or a car, or to cover an emergency.
Those were big, one-time expenses. But the data suggests we’re moving toward a world where credit is more woven into everyday spending—a tool for buying what you want, when you want it, rather than just for life’s major milestones.
The numbers behind the shift
The report tracks a clear structural change. The share of credit-active consumers who hold at least one consumption product — personal loan, credit card, or consumer durable loan — rose from 34% in 2017 to 51% in 2026. That’s a jump of roughly half to over half of all active borrowers.
Even more striking: the number of such borrowers quadrupled over that same period. In plain terms, more people are taking on credit cards and personal loans than ever before, and they’re doing it to fund things that fall into the category of “lifestyle” rather than pure necessity.
What this means for ordinary consumers
TransUnion CIBIL’s report states that credit is increasingly viewed as a means to enable a lifestyle-driven approach. That’s a contrast to past patterns, where borrowing was more often tied to predictable needs — a house, a car, a medical bill. The practical upshot: if you’re someone who puts a new laptop or a vacation on a credit card, or takes a small personal loan to cover a wedding expense or a home renovation, you’re part of a growing majority.
The credit system is being reshaped around these smaller, more frequent consumption purchases. For lenders, that means they have to think differently about risk.
For consumers, it means more options — but also a greater potential to pile up debt on everyday spending that doesn’t build long-term assets.
What to watch next
This trend is still playing out. The report doesn’t predict how long the shift will continue, but it does suggest that the definition of “normal” borrowing has already changed. The key question for consumers: as credit becomes a lifestyle enabler, how do you keep it a tool rather than a trap?
