74% of Indian adults took a loan at least once in the last decade
India’s formal credit footprint has expanded significantly over the past nine years. India’s credit-eligible population increased from 79 crore in 2017 to 89 crore consumers in 2026. Of this group, the share of ever-credited consumers, i.e., those who have accessed retail credit at least once, more than doubled from 35 per cent in March 2017 to 74 per cent in March 2026, demonstrating the wide progress and penetration of formal credit in India in the last few years, reveals TransUnion CIBIL’s new report.
Credit penetration and access to credit at the bottom of the pyramid which is required for Viksit Bharat, got enabled with financial inclusion Jan Dhan Yojana Accounts with massive customer acquisition and government using these accounts for Direct Benefit Transfers.
With JAM trinity, Jan Dhan accounts, Aadhaar, mobile also helped to reach out. Majority of women opened the account under Jan Dhan Yojana accounts. Self Help Groups scheme of the government also empowered women to get credit for self entrepreneurship.
Along with other credit / debit Cards extensively issued by all the banks along with foreign and private sector banks, Rupay card cards issued as part of credit access within built overdraft facilities also helped banks to expand credit. Agricultural credit, Kisan Credit Card helped all eligible farmers to avail agricultural and allied activities credit in easier way.
Along with the massive success of UPI of NPCI for easier and simpler payment products, reach being larger, the introduction of Frictionless Credit by RBI / United Lending Interface is going to assure credit on individual and group basis and ULI is also will have a greater success just like UPI.
The introduction of separate fund for funds by the government also facilitating these MSMEs to get equity support along with debt or composite credit both working capital and term loan. Banks have devised and encouraged women to avail entrepreneur credit at attractive rates as the experience of loan availed by Women are successful and healthy credit. The stand-up India and start up India loans are also supported by banks.
Talking to Bizz Buzz, M Narendra, former CMD, Indian Overseas Bank says, “We must give credit to the efforts put in by banks with the supportive policies of RBI and schemes and guarantees provided by the government for directed credit becoming successful.”
The unsecured loan and loan against jewellery (gold loan) has also shown substantial growth in these days because of its simplicity in getting credit. So long as these credits are growing orderly under various directives of RBI for meeting the gaps in income for productive use, they are encouraged. However, if these credits are used for speculative investment or equity markets which has volatility, these loans could become counter- productive.