Overview
- Growth in loan originations for consumers aged 18–35 slowed to 6% in the June 2025 quarter, with their share of total demand slipping to 56% from 58% a year earlier.
- Semi-urban and rural originations rose 9% year-on-year, led by a 15% jump in personal loans, and these regions’ share of total originations increased to 61%.
- Enquiry volumes stayed firm for personal, consumer durable and gold loans, while credit card demand declined among younger borrowers.
- The share of new-to-credit borrowers fell to 16% from 18% as lenders turned cautious, and growth in credit-active consumers cooled to 9% from 15%.
- Portfolio signals were mixed with downgrades rising to 25% and upgrades slipping to 29%, as stress ticked up in two-wheeler and credit card segments and early delinquency in consumer durables inched higher.