India's retail credit growth continued to decelerate in the quarter ending December 2024, primarily due to a significant 21% year-on-year decline in loan originations among new-to-credit (NTC) consumers, according to a report by TransUnion CIBI

 

Key Observations:

Overall Credit Growth: The moderation in retail credit growth was observed across various loan products, with consumption-led credit products experiencing a notable slowdown. ​

NTC Consumer Activity: NTC consumers, who are accessing credit for the first time, saw a substantial reduction in loan originations, indicating a slowdown in the onboarding of new borrowers. ​

Delinquency Trends: Despite the slowdown in credit uptake, delinquency rates remained broadly stable across most products, except for a slight increase in personal loans and credit cards. ​

Implications:

The decline in credit originations among NTC consumers suggests a cooling in consumer demand and possibly tighter credit supply. This trend could impact financial inclusion efforts and may prompt lenders to reassess their strategies to attract new borrowers. Additionally, the mixed delinquency performance highlights the need for vigilant credit risk management.​

For more detailed insights, refer to the full report by TransUnion CIBIL. ​