Summary of this article
Women and young borrowers are expanding India’s credit ecosystem.
Smaller cities are driving the next phase of credit growth.
Formal credit access has doubled over the past decade.
India's formal credit ecosystem is witnessing a demographic shift. Overall, access to formal loans has expanded significantly in the past decade. The next phase of growth is expected to be driven by borrowers who were once underrepresented in the financial system, such as women, young adults, and consumers from semi-urban and rural India. As per the latest TransUnion CIBIL’s latest report, namely, Unlocking Access: Journey of Credit Expansion in India, this has been highlighted at the same time; these segments are not only widening the country’s borrower base but also how credit is viewed, used, and monitored, which signals a more inclusive and digital lending ecosystem.
The findings of the report highlight that India’s credit expansion is no longer driven solely by the urban salaried borrowers. Instead, women, young adults, and borrowers from semi-urban and rural India have emerged as the biggest contributors to this expansion in the formal credit ecosystem in the last decade.
Between March 2017 and March 2026, the share of Indians who have accessed formal credit has increased from 35 per cent to 74 per cent, which is way above the double the contribution back in 2017. This also reflects the rapid expansion of financial inclusion. However, the report cites that the quality of this growth has also changed. Participation has widened across demographics and geographies rather than remaining concentrated in the traditional urban markets.
Growth In Women Borrowers
Women have emerged as the strongest force behind this surge and transformation in the market. Their share among India’s credit-active consumers has increased from 22 per cent in March 2017 to 30 per cent in March 2026. The report also highlights the growing financial maturity among female borrowers. Women with more than five years of credit history have increased from 29 per cent to 43 per cent in the same timeframe.
In parallel, women are also highly digitally engaged, with prompt credit monitoring among female borrowers increasing from zero to 21 per cent.
“The past decade has been a defining one for India’s credit ecosystem. In the 2016-17 period, the country saw momentous changes in the form of demonetization, the introduction of GST and the rapid adoption of Unified Payment Interface (UPI). Over the course of the decade, regulators, banks and lenders, NBFCs, fintechs, Credit Information Companies, technological advances and the digital public infrastructure collectively expanded pathways to credit. The COVID-19 pandemic accelerated the adoption of digital tools. Cumulatively, these developments are believed to have contributed to increased access to credit and financial inclusion, while enabling lenders to make more informed and timely credit decisions,” says Bhavesh Jain, MD and CEO, TransUnion CIBIL.
Rise In Young Borrowers
Young borrowers are equally reshaping this credit landscape in India. Consumers aged below 35 accounted for 39 per cent of the credit active population in March 2026. In 2017, this percentage rested at 33 per cent. This segment has also shown a similar growth pattern but with higher credit monitoring, surging to 52 per cent at present from 1 per cent in 2017. The report notes that the young consumer is increasingly using credit for consumption-led purchases such as personal loans and credit cards. Lending, which is business-oriented, has also increased in this age segment, with shares rising from 3 per cent to 9 per cent. This indicates that many are also opting for formal credit to support their ambitions.
State-wise Growth
This growth is also seen geographically. Indian credit growth is no longer dominated by western and southern states. Now, northern and central India have also recorded faster expansion. Uttar Pradesh credit consumer rate has increased from 8 per cent to 11 per cent in 2026, making it one of the country’s fastest-growing markets. Followed by Madhya Pradesh, which increased from 4 per cent to 6 per cent, while Bihar followed suit and rose from 3 per cent ot 5 per cent.
The findings of the report indicate that India’s credit story has evolved beyond just simple access. Increased participation from women, young borrowers, and residents of small towns is making this credit ecosystem more diverse.
