TransUnion CIBIL has released a new report titled 'Unlocking Access: Journey of Credit Expansion in India.' The report shows that the growth of credit-active consumers (people who have at least one live loan) is slowing down. Between 2017 and 2019, the market grew at 14% every year. However, between 2024 and 2026, this growth rate dropped to 9%. This change means the easy growth phase is over, and banks now need better plans to find new customers.

At the moment, India has reached a major turning point. Credit penetration (the percentage of the population that has taken a loan) rose to 28% in March 2026, compared to just 11% in 2017. The number of people eligible for loans in India has also grown to 89 crore. While nearly 74% of the population has tried credit at least once, many are not active borrowers right now. Compared to the US and Canada, where penetration is over 80%, India still has a long way to go.

A big concern for bankers is the drop in New-to-Credit (NTC) customers. NTC customers are people taking a loan for the very first time in their lives. In 2017, these first-time borrowers made up 32% of new loans, but by March 2026, they fell to only 13%. This means banks are mostly lending to the same old customers instead of finding fresh ones. Bhavesh Jain, MD & CEO of TransUnion CIBIL, says the future depends on reaching women, young people, and rural markets.

The situation for commercial enterprises (businesses) is also changing. The number of businesses eligible for loans rose to 8.7 crore in March 2026. However, credit-active enterprises (businesses with at least one running loan) actually dropped slightly to 9%. First-time business borrowers also fell sharply from 60% in 2017 to 39% in 2026. This shows that small businesses or MSMEs (Micro, Small, and Medium Enterprises) are struggling to get into the formal banking system.

For bank officers on the ground, this report is a wake-up call. The days of 'broad-based growth' where loans sold themselves are fading. Bankers must now focus on 'inclusive and sustainable' lending. This means checking credit scores carefully while also helping people who have never taken a loan before to understand the process. Digital access and better credit awareness among borrowers are helping, but the competition for good customers will become tougher.

Looking ahead, the industry should watch how banks target the MSME sector and rural areas. These are called the 'next growth frontier' in the report. If banks can successfully bring more first-time borrowers into the system, the growth rate might pick up again. For now, bank staff should be ready for a shift from quantity to quality in their loan portfolios (the total collection of loans held by the bank).