New Delhi, Aug. 12 -- Consumer loan growth in India appears to have bottomed out, and a faster recovery is expected with the moderation in credit costs in the coming quarters, noted a recent report by the global financial services firm Morgan Stanley.

The report highlighted that unsecured consumer loan growth, which had seen robust expansion in previous years, has slowed sharply over the past two years.

Year-on-year growth dropped from 31 per cent in the first quarter of FY23 to just 8 per cent in the fourth quarter of FY25, marking a significant moderation in lending activity.

Morgan Stanley stated "Unsecured Consumer Loans: Loan growth appears to have bottomed; we expect faster loan growth recovery and credit cost moderation".

The r...