Loan demand from younger borrowers declines to 6% in June quarter: Cibil

LOAN demand from younger consumers has slowed to a low of 6% in the June quarter, down from 9% a year ago, but loan origination volumes surged 9% year-on-year in semi-urban and rural markets, helping overall credit market clip at 10%.

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There was a steep demand slowdown from the 18-35 age group from 9% in June 2024 quarter to a low 6% in the same period this year, Transunion Cibil's said in its latest report on Wednesday. Within younger consumers, the share of demand fell to 56% in the reporting quarter from 58% 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 3% over the past two years, the report said.