Youth loan growth slows to 6%

Growth in loan originations for younger consumers slowed to six per cent in the quarter ended June 2025, down from nine per cent in the same period last year, according to TransUnion CIBIL’s September 2025 Credit Market Report.

- TBG NETWORK

The slowdown in demand from the 18-35 age group contributed to the Credit Market Indicator (CMI) dropping to 98 in the first quarter of FY26, compared to the same period a year ago.The CMI is a composite index that tracks the health of India’s credit market across demand, supply, consumer behaviour, and performance.Within younger consumers, the share of total demand fell to 56 per cent during the June 2025 quarter, compared to 58 per cent a year ago. Enquiry volumes for personal loans, consumer durable loans, and gold loans remained strong, but credit card demand declined. Loan originations from younger borrowers in metros and urban areas have also dropped by three per cent over the past two yea