India’s consumer loan market to reach $1t in 2029

Increased disposable income is driving demand for housing, vehicles, and durables.

India’s consumer lending market is expected to hit $1t by 2029, or a compound annual growth rate (CAGR) of 7.4% between 2025 and 2029.

The Indian consumer loan market stands at $758.8b in 2025.

Growth is supported by “robust economic growth, urbanization and growing consumer demand for housing, vehicles, and consumer durables,” said GlobalData, a data and analytics company.

Consumer loan value in India registered a growth of 27.6% in 2023, driven by rise in consumer income and evolving consumption patterns.

“India’s strong economic growth, fuelled by government investment in infrastructure and rising household investments in real estate, is contributing to the overall demand for consumer lending,” said Ravi Sharma, lead banking and payments analyst, GlobalData.

Increased disposable incomes are allowing consumers to spend more on discretionary items and services, further stimulating demand for various consumer loans,” Sharma said.

But, global economic uncertainties, exacerbated by the US tariffs could dampen the consumer sentiment and may slow down the growth of new loan originations for most loan products, GlobalData.