India’s formal credit landscape has undergone a significant transformation over the last decade, with nearly 74% of credit-eligible adults having accessed retail credit at least once by March 2026, according to TransUnion CIBIL’s latest report, Unlocking Access: Journey of Credit Expansion in India.
The study found that the share of ever-credited consumers more than doubled from 35% in March 2017 to 74% in March 2026, while credit monitoring surged from just 1% in March 2018 to 35% in March 2026. India’s credit-eligible population also grew from 79 crore to 89 crore during the period.
Growth in credit adoption has been driven by women, younger borrowers and consumers from semi-urban and rural regions. States such as Uttar Pradesh, Madhya Pradesh and Bihar recorded faster growth than traditional credit strongholds like Maharashtra and Tamil Nadu.
Commenting on the findings, Bhavesh Jain, MD and CEO, TransUnion CIBIL, said, “The past decade has been a defining one for India’s credit ecosystem. Regulatory reforms, digital public infrastructure, fintech innovation and the rapid adoption of digital tools have collectively expanded access to credit and strengthened financial inclusion.”
Consumer preferences have also evolved, with consumption-led products such as personal loans, credit cards and consumer durable loans emerging as the most widely held credit categories. The number of consumers holding such products grew fourfold between 2017 and 2026, while business-oriented credit expanded tenfold.
“The changes in wallet composition indicate that credit is increasingly being used to support lifestyle aspirations and entrepreneurial ambitions,” Jain added.
The report also highlighted a shift in India’s credit map. Uttar Pradesh’s share of credit-active borrowers rose from 8% to 11%, while Madhya Pradesh and Bihar increased their contributions to 6% and 5%, respectively.
According to Jain, greater demographic diversity and rising credit awareness have been the key drivers of India’s credit expansion, creating new opportunities to bring more consumers and businesses into the formal credit ecosystem.
