MUMBAI, July 30 — India’s formal credit market has experienced a dramatic expansion over the past decade, with the proportion of consumers actively using loans and cards more than doubling between March 2017 and March 2026, according to data released today by the credit bureau TransUnion CIBIL. The bureau’s latest analysis shows that the share of credit-active individuals among India’s overall credit-eligible population rose from 11% to 28% over the nine-year period.
This means that by early 2026, more than one in four eligible consumers had an open credit account, compared with just over one in ten in 2017. The overall credit-eligible population itself expanded from 79 crore to 89 crore individuals, the bureau reported.
Access to credit broadens sharply
Beyond the share of active borrowers, TransUnion CIBIL also recorded a marked increase in the proportion of consumers who had ever accessed formal credit. That figure climbed from 35% to 74% over the same period, the data indicate. The growth, officials said, was driven predominantly by consumption-led lending products — personal loans, credit cards, and consumer durable loans — rather than by mortgage or business lending.
The account provided by the bureau shows a structural shift in Indian household financing. In 2017, formal credit remained a relatively narrow channel, concentrated among higher-income and urban segments.
By March 2026, the expansion of digital lending platforms, wider acceptance of credit scores, and aggressive marketing by banks and non-bank financial companies had broadened access substantially. The bureau did not attribute the rise to any single policy or economic factor, but the trend aligns with the broader push by the Reserve Bank of India and successive governments to deepen financial inclusion.
Regional context: a decade of transformation
For observers of South Asian financial systems, the numbers represent a notable acceleration. India’s formal credit penetration had traditionally lagged behind that of many middle-income economies, constrained by documentation requirements, limited branch networks in rural areas, and a large informal lending sector. The nine-year period covered by the bureau’s data coincides with the government’s Jan Dhan financial inclusion program, the rollout of the Aadhaar digital identity system, and the widespread adoption of smartphones and UPI payments — developments that together eased both the supply and demand for small-ticket consumer credit.
The bureau’s report does not disaggregate urban versus rural trends, but the overall direction is unambiguous: consumption-led lending has become a primary engine of credit growth. Personal loans, which typically carry higher interest rates and shorter tenors, have grown especially fast, as have credit card receivables.
Consumer durable loans, offered at point of sale for electronics, appliances, and vehicles, have also contributed significantly.
What to watch next
The pace of growth — more than doubling the active credit footprint in nine years — raises questions about sustainability and credit quality. The bureau’s data are based solely on formal credit accounts reported by members; they do not capture informal borrowing or delinquencies that may emerge in an economic downturn. Regulators and market participants will be watching closely to see whether the newly credit-active consumers maintain healthy repayment behaviour or whether over-leverage becomes a concern in the years ahead.
