Rural credit demand rises as urban youth borrowing slows: CIBIL report

Daijiworld Media Network - Mumbai

Mumbai, Sep 24: Credit activity across India's semi-urban and rural regions continued to gain traction during April–June 2025, reflecting sustained consumer demand beyond metropolitan centers, even as overall credit demand from younger borrowers (aged 18–35) saw a slowdown, according to the latest TransUnion CIBIL report released on Wednesday.

While youth demand cooled — with loan originations in the 18–35 age group growing at just 6% year-on-year compared to 9% during the same period last year — rural and semi-urban areas recorded a robust 9% annual growth in loan originations, signaling resilient consumption and access to finance outside traditional urban strongholds.

This shift comes as India anticipates a boost in festive spending, aided by recent