Credit Market Indicator – June 2025

The CMI is a comprehensive measure of data elements that are summarized monthly to analyse changes in credit market health, categorized under four pillars: demand, supply, consumer behaviour, and performance. These factors are combined into a single, comprehensive indicator, and pillars can also be viewed in more detail individually. The CMI for March 2025 was 97, lower than 103 in March 2024.

Key highlights of the report include:

• Retail credit market demand moderated, with a marginal increase in supply during the Jan-March 2025 quarter
• Loan originations shifted towards high-ticket segments of home, two-wheeler and consumer durable loan categories 
• Credit performance for consumption-led credit products such as personal loans, consumer durable loans and credit cards showed signs of stabilization quarter-on-quarter from Sept 2024 onwards

India’s retail credit market continued to see a softening in the last quarter of financial year 2024–25, as a moderation in credit demand and a marginal rise in supply pushed the Credit Market Indicator (CMI) to a two-year low. The muted demand was more pronounced among consumers 35 years old or younger, which is reflected in the easing of consumption loans, which is typically the choice of products for younger borrowers. However, signs of improving credit performance emerged, particularly through consistent month-on-month declines in credit card delinquencies over the past three months.