Formal credit access in India doubles to 74%, widening retail financing base

The share of Indians with formal credit access rose from 35% in March 2017 to 74% in March 2026, TransUnion CIBIL data shows. Growth in personal loans, cards and consumer-durable finance is expanding the addressable market for electronics and consumer-goods retailers, including in smaller cities and rural areas.

— Filed Fri, 31 Jul, 2026, 14:33 IST · Source ET Small Business · Updated

India’s formal credit access and active borrowing have expanded sharply, led by personal loans, credit cards and consumer-durable finance. Growth among younger, women, rural and semi-urban borrowers signals a broader financing base for electronics and consumer-goods retailers.

Why this matters

The update follows TransUnion CIBIL signals on credit-active consumer growth slowing near 28% penetration and expanding financed durable demand in Uttar Pradesh, Madhya Pradesh and Bihar.

Retail-company signals are accelerating, up 258260% QoQ.