Retail Loan Demand Slows But Delinquencies Improve In Q4
Similarly, the delinquency rate for personal loans was at 1.14 per cent as of March 2025, against 1.34 per cent as of December 2024 and 1.37 per cent as of September 2024.
Mumbai: India’s retail loan market continued to see a softening in the last quarter of the 2024-25 financial year as borrowers aged 35 or younger refrained from credit. New loan originations grew at a slower rate of 5 per cent year-over-year (YoY) in March 2025, compared to 12 per cent in March 2024. This and other factors pushed the Credit Market Indicator (CMI) to a two-year low of 97, according to TransUnion CIBIL’s June 2025 Credit Market Report. A higher CMI reading indicates improving credit market health, while a lower reading indicates a decline.
The credit information company said a bulk of the slowdown in growth is due to the consumption loans segment like consumer durable loans and credit cards, and added that those under 35 years of age, especially ones living in metros and urban areas, are not borrowing as much.
The study found that delinquencies improved across key product segments. The 90+ days past due balance level delinquency rate for credit cards stabilized at 2 per cent as of March 2025, against 2.04 per cent as of December 2024 and 2.02 per cent as of September 2024, marking the first QoQ improvement in the past four quarters.
Similarly, the delinquency rate for personal loans was at 1.14 per cent as of March 2025, against 1.34 per cent as of December 2024 and 1.37 per cent as of September 2024.
