Overview

• New loan originations grew 5% year-over-year in March 2025, down from 12% a year earlier, pushing the Credit Market Indicator to a two-year low of 97.
• Demand contraction was most severe among consumers aged 35 or younger, reflected in a three percentage point drop in the share of new-to-credit borrowers.
• Originations of large-value loans outpaced overall growth, with home loans above Rs 1 crore rising 9% and two-wheeler loans above Rs 1.5 lakh climbing 7%.
• Rural and semi-urban regions saw inquiry volumes climb to 52% of total demand in Q4, up from 49% a year ago.
• Delinquency rates for consumption-led credit products improved, with 90+ days past due balances for credit cards stabilizing at 2% and personal loan delinquencies falling to 1.14%.