MUMBAI: Lenders are playing it safe, borrowers are being cautious, and fewer youngsters are seeking credit going by trends in Q1FY26, a report by credit bureau TransUnion Cibil showed.The report, which analyses credit trends for the June quarter, said portfolios are tilting towards secured lending, with collateral-backed loans growing faster than consumption-led credit. In the three months to June 2025, disbursals rose 16% for property loans, 34% for gold loans, and 6% for home loans. In contrast, personal loans rose 9%, auto loans 4%, and two-wheeler loans 3%, underscoring the weaker appetite for unsecured borrowing.The Credit Market Indicator (CMI) for the quarter stood at 98, down from 102 a year earlier, showing a moderation in the retail credit market as portfolios shift and demand from younger consumers slows.TransUnion Cibil’s CMI measures the health of the retail credit market by aggregating several data points across four main pillars: credit demand, credit supply, consumer behavior, and credit performance New-to-credit consumers accounted for a smaller share of loan originations. Their contribution fell to 16% in the quarter, two percentage points lower than last year. Origination volumes also fell sharply for some products, with credit cards declining 20% and twowheeler loans slipping 1%.Portfolio quality has broadly held up, but the report flagged emerging signs of strain. Among prime borrowers, 25% saw their scores downgraded over a 12-month period, compared with 23% a year earlier, pointing to mild repayment stress. Young consumers are showing less interest in credit. The demand CMI fell to 92 in June from 95 a year earlier and 98 in June 2023. Enquiry volumes from those under 25 years dropped from 19% of the total in June 2023 to 18% this year, while those from the 26–35 age group declined from 40% to 38% in the same period. .
