Credit Market Indicator - September 2024

India’s retail credit growth moderated in the quarter ending June 2024 as financial institutions tightened the supply of credit, particularly on consumption-led products like credit cards, consumer durable loans and personal loans. Credit performance, as measured by balance-level delinquencies, improved across most products, apart from credit cards. These were some of the findings of the latest edition of the TransUnion CIBIL Credit Market Indicator (CMI)1 report for the quarter ending June 2024. 
 

Key highlights include:

• Growth moderated across all credit products, particularly on small ticket loans
• Continued decline in new-to-credit volumes, especially when younger consumers are entering credit marketplace for the first time, indicates an opportunity for lenders to drive financial inclusion given the large young population
• Credit performance continued to improve across most products, except for credit cards
   

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 June 2024 was 101, which was same as that in June 2023. The indicator has remained consistently above 100 since June 2022, highlighting healthy retail lending trends in India.