Kolkata, March 26 -- India's retail credit growth continued to moderate in the quarter ending December 2024, particularly among New-to-Credit (NTC)1 consumers.
This was most evident for consumption-led credit products originated by NTC consumers, which saw a 21% year-over-year (YoY) decline in loan originations, compared to a decline of 2% for consumers with existing credit.
Consumption-led products are defined as credit cards, personal loans and consumer durable loans.
Originations are a measure of new accounts opened and are driven by both consumer demand and lender supply. Lenders' cautious approach to the origination of consumption-led credit products disproportionately affected NTC borrowers because 40% of NTC borrowers choose con...