India’s retail credit growth continued to lose steam in the quarter ended December 2024, with a significant decline in credit uptake among new-to-credit (NTC) consumers. Consumption-led credit products originated by NTC consumers witnessed a sharp 21 per cent year-on-year (YoY) decline in loan originations, according to a report by TransUnion Cibil.

This slowdown in credit growth is not an encouraging trend, particularly among first-time borrowers who are critical to driving economic expansion. The decline in loan originations suggests that NTC consumers are becoming increasingly cautious in taking on debt, which could impact consumption.