Credit Market Indicator – Sept 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 June 2025 was 98, lower than 102 in June 2024.

• Demand from semi-urban and rural regions continued to hold steady even as retail credit demand from younger consumers declined in the quarter ending June 2025 
• Credit portfolios rebalanced in favour of secured products, transitioning from consumption to collateral-backed lending, with loan against property balances increasing 23% year-over-year (YoY)
• Portfolio quality improved for most products, though emerging risks are visible in certain segments

India’s retail credit market is undergoing a cyclical shift marked by contrasting trends in consumer demand and portfolio performance. While credit demand from younger consumers (aged 18–35) declined during the quarter ended June 2025, semi-urban and rural regions continued to demonstrate resilience, with demand rising in these geographies.