India's Credit Binge: A Double Edged Sword India's formal retail credit penetration has more than doubled over the past decade, with 74% of consumers accessing credit at least once in March 2026, up from 35% in March 2017.
This growth is largely driven by consumption led lending, with personal loans, credit cards, and consumer durable loans becoming primary entry points into the formal credit system.
The expansion of credit access has been accompanied by a significant increase in engagement, with the proportion of credit active consumers rising from 11% to 28%.