New Delhi, Dec 15 (IANS) The Goods and Services Tax rationalisation has boosted the retail credit market amid better affordability as indicated by a Credit Market Indicator (CMI) that rose to 99 in Q2FY25 from 98 in the prior quarter, a report said on Monday.

Increased retail loan demand signalled renewed consumer confidence and market optimism, the report from TransUnion CIBIL said.

CMI’s demand pillar climbed to 95 in the quarter ended September 2025, from 93 in the quarter ended September 2024, led by vehicle finance and consumer durables, it added.

Daily average indexed demand for consumer durable loans jumped to 189 in October 2025 from 128 in October 2024, while two‑wheeler loan demand rose to 272 from 249, and auto loan demand rose to 133 from 115, the report said.

The CMI for supply rose to 97 during the third quarter of 2025, compared to 91 in the same quarter of 2024, primarily driven by consumption loans (except credit cards) and gold loans.

Credit supply of secured assets such as home loans, auto loans and consumer durable loans showed positive momentum in the September 2025 quarter, despite experiencing a decline last year, it added

Semi‑urban and rural regions accounted for 61 per cent of overall credit supply in the quarter.

“For lenders, this presents an opportunity to focus on pockets where supply is strong while simultaneously analysing regions showing muted growth to identify underlying challenges,’’ Bhavesh Jain, MD and CEO, TransUnion CIBIL Jain said.

New‑to‑credit borrowers increased by 5 per cent YoY in the quarter ended September 2025, and borrowers under 35 grew 12 per cent.

“Lenders must capitalize on these emerging segments by designing targeted lifecycle strategies to ensure they support borrowers’ evolving financial needs,” Jain said.

While overall asset quality remains stable, recent trends indicate emerging stress in specific loan segments such as micro-LAP and small-ticket housing loans, he added.

–IANS

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