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India’s retail recognition marketplace maturation successful the July–September 2025 quarter, de-grew year-on-year (YoY) adjacent arsenic Goods & Services Tax (GST) chopped and festive play request provided a boost to consumption-led credit, according to TransUnion CIBIL’s latest Credit Market Indicator (CMI) report.
The CMI, which tracks retail recognition demand, supply, user behaviour and show for the September quarter, was little astatine 99 than 100 YoY and 103 successful September 2023 quarter.
However, Quarter connected Quarter (QoQ) it roseate from 98 signalling an betterment successful wide recognition conditions connected a sequential basis.
The implementation of GST complaint rationalisation successful September 2025, up of the festive season, supported a revival successful retail recognition demand, peculiarly successful consumer-facing indebtedness segments.
Consumer durable loans recorded the strongest increase, with festive-period request astir 1.5 times higher than the January–June basal period, according to the report.
Two-wheeler and car loans besides witnessed higher incremental request during the festive period, reflecting improved affordability and a pickup successful discretionary spending.
“GST 2.0 was a much-needed measurement to stimulate economical growth, and its affirmative interaction is evident successful the betterment of user sentiment and the upward inclination successful recognition demand. While fostering and sustaining this recognition request is crucial, it is arsenic important to beforehand liable borrowing practices. Lenders indispensable prosecute with consumers astatine aggregate touchpoints to guarantee fiscal subject and sustainability to enactment steadfast maturation of recognition successful India,’’ said Bhavesh Jain, MD and CEO, TransUnion CIBIL.
The CMI for request improved to 95 successful the 4th ended September 2025, compared with 93 successful the aforesaid play past year.
Despite the quarter-on-quarter improvement, the YoY maturation successful credit-active consumers slowed to 9% successful the September 2025 quarter, arsenic lenders continued to follow a calibrated attack to recognition expansion, arsenic per the report.
This moderation masked affirmative shifts wrong circumstantial borrower segments.
According to the study maturation among new-to-credit consumers turned affirmative astatine 5% year-on-year, reversing a diminution recorded a twelvemonth earlier, portion recognition request among borrowers beneath 35 years of property roseate 12% year-on-year.
Notably, semi-urban and agrarian markets accounted for the bulk of this expansion, underscoring the relation of emerging geographies successful sustaining retail recognition maturation adjacent arsenic wide enlargement softened.
On the proviso side, lenders continued to absorption connected secured and asset-backed lending. The CMI for proviso roseate to 97 successful the September 2025 4th from 91 a twelvemonth earlier, driven by maturation successful location loans, car loans, user durable loans and golden loans.
Unsecured lending remained muted, with recognition paper originations continuing to decline, reflecting lenders’ absorption connected portfolio prime amid evolving hazard conditions arsenic per the report.
Semi-urban and agrarian regions accounted for 61% of full recognition proviso during the quarter, reinforcing the ongoing displacement successful lending enactment beyond metro and municipality centres.
The wide plus prime remained stable, with the CMI for recognition show improving to 105 successful the September 4th from 100 a twelvemonth earlier. Delinquency levels crossed astir large retail indebtedness categories remained contained.
However, the study flagged aboriginal signs of accent successful circumstantial segments of micro loans against spot and small-ticket lodging loans.
While spot loans’ show improved with balance-level 90+days delinquencies astatine 1.4%, improving by 29 ground points YoY, aboriginal signs of accent were noted successful the micro-loans against spot (LAP) segment3, wherever delinquency accrued 45 ground points YoY, reaching 3.3% arsenic of September 2025.
In the micro-LAP segmentearly delinquencies measured arsenic 90+ days past owed reported successful 12 months connected publication roseate 29 bps YoY to 2.2% for originations successful the 4th ended September 2024, which is higher than the wide LAP aboriginal delinquencies astatine 1.6%. In small-ticket lodging loans4, aboriginal delinquencies roseate 19 bps YoY to 0.8% for originations successful the quarterended September 2024, which is higher than wide lodging indebtedness aboriginal delinquencies astatine 0.5%.
Consumer durable loans recorded the strongest increase, with festive-period request astir 1.5 times higher than the January–June basal period, according to the report. | Photo Credit: ADNAN ABIDI
“While wide plus prime remains stable, caller trends bespeak emerging accent successful circumstantial indebtedness segments specified arsenic micro-LAP and small-ticket lodging loans. As a facilitator of recognition inclusion, TransUnion CIBIL is committed to equipping lenders with actionable insights and precocious analytics to navigate these challenges. Our solutions alteration lenders to place aboriginal informing signals, measure hazard effectively, and prosecute borrowers responsibly. By leveraging these capabilities, lenders tin mitigate stress, support portfolio health, and proceed fostering a robust and inclusive recognition ecosystem,” Mr. Jain added.
