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 December 2024 was 97, lower than 103 in December 2023 and the lowest since December 2021.

Key highlights of the report include:

Consumption-led credit supply continued to decline, with a more pronounced impact on New-to-Credit (NTC) consumer originations
Growth rate of credit active consumers at slowest since December 2021
Credit performance for personal loans showed signs of stabilization for the first time since June 2023

India’s retail credit growth continued to moderate in the quarter ending December 2024, particularly among New-to-Credit (NTC) consumers. Lenders’ cautious approach to the origination of consumption-led credit products such as credit cards, personal loans and consumer durable loans, disproportionately impacted NTC borrowers because a majority of NTC borrowers choose consumption-led products as their first foray into formal credit. These trends highlight the need for focused strategies to expand credit supply to this segment and were some of the findings in the TransUnion CIBIL Credit Market Indicator (CMI) report for the quarter ending December 2024.