India's loan story: Women, younger borrowers and non-metro regions driving credit growth as numbers jump to 74% in 2026

India’s credit-eligible population has increased from 79 crore in 2017 to 89 crore consumers in 2026, a study by TransUnion CIBIL over the period from March 2017-2026 showed. Of these eligible adults, around 74% of Indian adults have accessed a loan at least once in these past 10 years, it added.

In terms of demographic, the credit footprint expansion is being driven by women, younger borrowers and non-metro regions. Among the regions, growth in Uttar Pradesh, Madhya Pradesh and Bihar is outpacing that of traditional strongholds in the west and south India, the report added.

Bhavesh Jain, MD and CEO of TransUnion CIBIL identified that in the period of the study, India saw “momentous changes” such as demonetisation, goods and services tax (GST) and Unified Payment Interface (UPI).

74% of eligible Indians took credit at least once

The credit information company's new report titled ‘Unlocking Access: Journey of Credit Expansion in India’ noted that the proportion of eligible Indians who have taken credit at least once has more than doubled from 35% in March 2017 to 74% in March 2026. Meanwhile, credit monitoring has jumped from 1% to 35% between March 2018 and March 2026, it added.

“Over the course of the decade, regulators, banks and lenders, non-banking finance companies (NBFCs), fintechs, credit information companies (CICs), technological advances and the digital public infrastructure have collectively expanded pathways to credit,” Jain stated, adding that the pandemic also “accelerated adoption of digital tools”.

According to the study, the number of New-To-Credit (NTC) consumers in retail originations declined from 32% in March 2017 quarter to 13% in the March 2026 quarter. But it also identified significant opportunity to bring more NTC consumers and NTC commercial entities into the formal credit fold.

Women, youngsters, non-metro regions drive growth

Further, the study noted that the widening of formal credit access was accompanied by a change in the composition of India’s credit-active population.

• Women borrowers increased their share from 22% in March 2017 to 30% in March 2026. Among them, the share of women with over five years of retail credit experience increased from 29% to 43%, while semi-urban and rural credit-active women consumers went up to 64% in March 2026, compared to 57% in March 2017.

“Women are clearly becoming more financially aware, engaged, and driving sustainable inclusion. Thanks to digitisation and heightened credit awareness, credit maturity among women borrowers has been impressive," according to Jain.

• Young borrowers rose from 33% to 39% in the same period. In this category, young consumers from semi-urban and rural regions in particular increased their share from 47% to 61%.

“For younger borrowers, mobile phones rather than two-wheelers and vehicles appear to be products of choice, as this mobile phone-native generation sees them as productivity tools,” Jain added.

• Further, the share of consumers from semi-urban and rural regions (SURU) went up from 53% to 63%.

• Data also showed that credit participation has widened with the share of over-leveraged borrowers' originations increased from 5% in FY17 to 18% in FY24 before moderating to 15% in FY26.
• It added that industry action helped stem the increase over the last two years. Higher leverage was largely concentrated among high-momentum demographic groups such as younger consumers.
• Overall, the share of credit-experienced consumers, i.e., those with a longer credit history, increased from 38% to 54%.

State-wise: UP, Madhya Pradesh, Bihar, Bengal see rise

• A state-wise analysis of credit uptake reveals that growth in northern and central India has outpaced that of western and southern India between 2017 and 2026.
• Maharashtra and Tamil Nadu, seen as traditional strongholds of credit uptake, remained among the country’s largest credit markets, although their respective shares moderated from 12% to 10% and from 11% to 9%.
• On the other hand, Uttar Pradesh increased its contribution from 8% in March 2017 to 11% in March 2026, Madhya Pradesh rose from 4% to 6%, Bihar from 3% to 5%, and West Bengal from 4% to 5%.

Disclaimer: This story is for educational purposes only. The views expressed above are those of individual analysts or broking companies, and not of Mint. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.