Seventy-four percent of Indian consumers had taken formal credit at least once by March 2026. Nine years earlier the figure was 35%. TransUnion CIBIL put those numbers in its latest report, which describes retail credit penetration as more than doubled over the decade.
The pool of people eligible for credit grew too, from 79 crore to 89 crore. More of them are actually borrowing. The share of credit-active consumers went from 11% to 28%.
Consumption loans drove it. Personal loans, credit cards and consumer durable loans are now the usual first step into the credit system, the report found.
“The changes in wallet composition point to how 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. “Credit dispersion has travelled a long way thanks to consumption loans.” Among younger borrowers, he said, “mobile phones rather than two-wheelers and vehicles appear to be products of choice.”
Credit moves north and central
The map has shifted as well. 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 rose from 8% in 2017 to 11% in 2026. Madhya Pradesh went from 4% to 6%, and Bihar from 3% to 5%.
Maharashtra and Tamil Nadu saw their shares moderate. Both remain among the largest credit markets.
