India's credit-active consumer growth slows as gold loan quality deteriorates

TransUnion CIBIL data shows a moderation in the expansion of India's credit-active base, coinciding with rising non-performing assets in the fast-growing gold loan sector.

By Handelsavisen Newsroom · Automated 2026-07-30 15:32 UTC · 1 min read

The growth rate of India's credit-active consumer base has moderated, signaling a potential cooling in the country's rapid credit expansion.

According to a report by TransUnion CIBIL, the compounded annual growth rate for this segment has slowed, prompting lenders to reconsider their outreach strategies.

Handelsavisen has previously reported that India's gold loan sector, one of the fastest-growing sources of quick cash for consumers, is facing rising stress.

While the consumer side shows signs of saturation or caution, the commercial sector remains robust, with the number of credit-eligible customers rising to 8.7 crore by March 2026.

This moderation in consumer credit growth arrives against a backdrop of deteriorating credit quality in specific segments.

Handelsavisen has previously reported that India's gold loan sector, one of the fastest-growing sources of quick cash for consumers, is facing rising stress.

One in five gold loans is now issued to borrowers who already carry non-performing assets on other credit lines, indicating a deepening of over-leveraged households.