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Time of India
8 hours ago
- Business
- Time of India
Retail credit market: Growth slows to 5% despite RBI rate cut; credit health hits two-year low
India's retail credit market continued to lose momentum in the final quarter of FY2024–25, with fresh loan originations growing at just 5 per cent in March 2025, against the 12 per cent seen a year ago over the corresponding period. This slowdown comes even after the RBI cut its benchmark lending rate by 25 basis points to 6.25 per cent in February. According to TransUnion CIBIL's latest Credit Market Report, released in June, the Credit Market Indicator (CMI) dropped to 97, its lowest reading in two years. A higher CMI score signals a healthier credit market, while a lower score points to weakening conditions. 'The muted demand was more pronounced among consumers 35 years old or younger. Consequently, the share of new-to-credit (NTC) consumers that lenders supplied decreased by three percentage points during the same period, given that a large share of younger consumers constitute the NTC segment,' the report noted. The share of credit enquiries from the under-35 age group dropped to 56 per cent in the March 2025 quarter, from 58 per cent in the same period the previous year. However, there were some bright spots. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Husägare betalar näst intill inget för solpaneler Greenmatch Få offert Undo Credit card delinquencies saw consistent month-on-month declines from January to March. The report, cited by PTI, showed that besides personal loans, the value of loans grew faster than their volume, suggesting a shift towards higher-value borrowing. The rising share of large-ticket home and two-wheeler loans also reflected lenders' growing preference for credit backed by high-value assets. According to the report, home loans exceeding Rs 1 crore grew by 9 per cent year-on-year in the quarter ending March 2025, against the 7 per cent decline seen across the overall home loan segment during the same period last year. High-value two-wheeler loans above Rs 1.5 lakh recorded a 7 per cent annual growth, reversing the 1 per cent contraction seen a year earlier. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
8 hours ago
- Business
- Business Standard
Retail credit growth slows in Q4 FY25 despite rate cut: CIBIL report
The retail credit market continued to see a softening in the last quarter of 202425, as new loan originations (partly a measure of credit demand and supply) grew at a slower rate of 5 per cent in March 2025 against 12 per cent a year ago, according to a report. The slowdown was despite the RBI slashing its benchmark lending rate by 25 basis points to 6.25 per cent in February. This and other factors pushed the Credit Market Indicator (CMI) to a two-year low of 97, according to TransUnion CIBIL's June 2025 Credit Market Report. A higher CMI reading indicates improving credit market health, while a lower reading indicates a decline. "The muted demand was more pronounced among consumers 35 years old or younger. Consequently, the share of New-to-Credit (NTC) consumers that lenders supplied decreased by three percentage points during the same period, given that a large share of younger consumers constitute the NTC segment," it said. However, it said, signs of improving credit performance emerged, particularly through consistent month-over-month declines in credit card delinquencies from January to March 2025. The slowing of credit demand from younger consumers was evident from the fall in the share of enquiries from those aged 35 years or younger to 56 per cent for the quarter ending March 2025, down from 58 per cent in the quarter ending March 2024. The report said across all other loan products, with the exception of personal loans, the growth in volume was lower than the growth in value, which indicates a preference for higher-value loans. The increases in the share of high-ticket home and two-wheeler loans indicate a preference among lenders for loans backed with high-value assets. Home loans above Rs 1 crore grew 9 per cent year-over-year (YoY) during the quarter ending March 2025, compared to a negative growth of 7 per cent for the entire home loan segment in the year-ago period, the report said. Similarly, two-wheeler loans above Rs 1.5 lakh grew 7 per cent YoY during the quarter ending March 2025 against a negative growth of 1 per cent a year ago.
Time of India
9 hours ago
- Business
- Time of India
Retail credit grows at slower pace in Q4 of FY25: Report
The retail credit market continued to see a softening in the last quarter of 2024-25, as new loan originations (partly a measure of credit demand and supply) grew at a slower rate of 5 per cent in March 2025 against 12 per cent a year ago, according to a report. The slowdown was despite the RBI slashing its benchmark lending rate by 25 basis points to 6.25 per cent in February. This and other factors pushed the Credit Market Indicator (CMI) to a two-year low of 97, according to TransUnion CIBIL 's June 2025 Credit Market Report. A higher CMI reading indicates improving credit market health, while a lower reading indicates a decline. "The muted demand was more pronounced among consumers 35 years old or younger. Consequently, the share of New-to-Credit (NTC) consumers that lenders supplied decreased by three percentage points during the same period, given that a large share of younger consumers constitute the NTC segment," it said. Live Events However, it said, signs of improving credit performance emerged, particularly through consistent month-over-month declines in credit card delinquencies from January to March 2025. The slowing of credit demand from younger consumers was evident from the fall in the share of enquiries from those aged 35 years or younger to 56 per cent for the quarter ending March 2025, down from 58 per cent in the quarter ending March 2024. The report said across all other loan products, with the exception of personal loans, the growth in volume was lower than the growth in value, which indicates a preference for higher-value loans. The increases in the share of high-ticket home and two-wheeler loans indicate a preference among lenders for loans backed with high-value assets. Home loans above Rs 1 crore grew 9 per cent year-over-year (YoY) during the quarter ending March 2025, compared to a negative growth of 7 per cent for the entire home loan segment in the year-ago period, the report said. Similarly, two-wheeler loans above Rs 1.5 lakh grew 7 per cent YoY during the quarter ending March 2025 against a negative growth of 1 per cent a year ago. Economic Times WhatsApp channel )
