Indicating improvement in economic activities and consumer sentiment, the Credit Market Indicator (CMI) of TransUnion CIBIL rose up to 91 in November 2021, up four points from August last year. This was a significant increase from the low of 79 in February 2021.

“The latest TransUnion CIBIL CMI showed credit demand continued to grow,” it said in a statement on Wednesday.

Inquiry volume, which is a measure of consumers applying for new credit—by product type for the three months ending November 2021, showed a year-on-year increase in demand for consumption products, with consumer durable loans up 97 per cent, and personal loans up 80 per cent. 

Early data suggests, the increase in demand has continued past the festival period and into the New Year. Inquiry volumes increased by 33 per cent year-on-year (YoY) in January 2022 compared to a decline of 10 per cent in January 2021.

“Despite the third wave of the pandemic, India’s retail credit market continued to exhibit an accelerated growth trajectory, with consumer demand outlasting the festive season. This growth coupled with the fact that credit performance remained stable bodes well for the resurgence in India’s credit market,” said Rajesh Kumar, Managing Director and CEO, TransUnion CIBIL.

The CMI is a measure of data elements that are summarised on a monthly basis to analyse changes in credit health and are categorised under four pillars -- demand, supply, consumer behavior and performance.

Assessment of the CMI on credit performance shows stability in overall performance through 2021.

The balance-level delinquencies—defined as 90 days plus past due—saw little change on a YoY basis in November 2021 across most major retail lending categories.

Credit cards recorded a 77 basis points improvement, consumer durable loans was up by one basis point and personal loans up by five basis points.

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