India's Digital Credit Growth Enters New Phase as AI, Alternative Data Take Centre Stage
India's digital public infrastructure and fintech ecosystem have significantly expanded access to formal credit over the past decade, but the next phase of growth is expected to depend less on wide access but more on use of artificial intelligence (AI), alternative data and responsible lending to reach borrowers with little or no credit history.
According to TransUnion CIBIL's latest report, Unlocking Access: Journey of Credit Expansion in India, nearly three out of four eligible Indian adults have accessed formal retail credit at least once, up from 35% in 2017 to 74% in March 2026. During the same period, the country's credit-eligible population increased from 79 crore to 89 crore, while credit monitoring rose from just 1% in 2018 to 35% in 2026, reflecting greater awareness and participation in the formal financial ecosystem.
However, while formal credit participation has expanded significantly, the pace of adding new credit-active consumers has moderated,...
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