Lenders' Caution Slows Financial Inclusion Amid NTC Borrower Decline

Recent data from Transunion Cibil shows a decline in New to Credit (NTC) borrowers in India, indicating lender caution and slowing financial inclusion. The share of NTC loan originations dropped to 16% in the June quarter. Semi-urban and rural lending remain robust amidst a cautious credit landscape.

Devdiscourse News Desk | Mumbai | Updated: 24-09-2025 19:54 IST | Created: 24-09-2025 19:54 IST

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Country:
India

In a development raising concerns for financial inclusion, lenders' cautious approach has resulted in a slowdown of new to credit (NTC) borrowers in India, a recent report revealed.

According to Transunion Cibil, only 16% of loans originated between April and June 2025 were NTC, compared to 18% in the previous year. This decline underscores a more cautious lending environment.

Despite reduced demand from younger consumers, growth was sustained by robust semi-urban and rural lending, noted Bhavesh Jain, Managing Director and CEO of the credit bureau.

(With inputs from agencies.)