India’s consumer lending growth slows in 2025

Consumer demand for mortgages and personal loans will be dampened, it said.

India’s consumer lending market is expected to grow 4.9% in 2025 and reach $724.2b, according to estimates by GlobalData.

The country’s growing middle class, improving disposable incomes, and supportive monetary policies continue to propel credit demand, the data and analytics company said in a report.

Consumer loan value in India grew by 27.6% in 2023 and is estimated to have grown a further 8.3% in 2024 to reach $690.5b.

However, global economic uncertainties, exacerbated by the recently announced US tariffs could dampen consumer sentiment, warned Ravi Sharma, lead banking and payments analyst, GlobalData.

This is likely to result in slowdown in the growth of new loan originations for most loan products, Sharma said.

Mortgage loans accounted for 49.1% of the consumer loan market share in India in 2024, driven by affordable housing prices and an increased supply in residential property, GlobalData said.

However, growth in the segment is expected to slow to 5.9% in 2024— from a 17.4% growth between 2020 to 2024— due to the global economic scenario.

The personal loan market accounted for 45.8% of the share in total consumer loans in 2024. It will grow at only 3.8% in 2025 as GlobalData estimates reduced consumer demand.