New Delhi [India], June 24 (ANI): Credit demand in rural and semi-urban areas has remained relatively strong as compared to metro and urban areas, even as overall credit enquiries witnessed moderation in the country.

According to the TransUnion CIBIL data for the three months ending March 2025, rural and semi-urban regions have weathered the slowdown in demand better than metro and urban areas.

It said, 'Credit demand in rural and semi-urban areas seemed to have weathered the demand moderation better'.

As per the data, credit enquiries in rural areas accounted for 22 per cent of the total credit enquiries during the quarter ended March 2025, which is an improvement from 20 per cent in both March 2023 and March 2024.

Semi-urban areas, on the other hand, held the highest share of enquiries at 30 per cent in March 2025, up from 29 per cent in the previous year and 28 per cent in March 2023.

In comparison, metro areas saw a slight decline in credit enquiries, dropping from 32 per cent in March 2023 to 29 per cent in March 2025. Urban areas maintained a stable share of 19 to 20 per cent across the three years.

This trend highlighted a noticeable shift in credit demand resilience towards less urbanised regions.

The data also revealed that the overall credit demand has moderated, particularly among younger consumers.

In the age group of 26-35 years, which traditionally forms a large segment of borrowers, the share of credit enquiries decreased slightly from 41 per cent in March 2023 and 2024 to 39 per cent in March 2025.

Meanwhile, those under 25 years of age maintained a consistent share of 17 to 18 per cent.

Consumers aged 36-45 saw their share increase marginally to 25 per cent in March 2025, from 24 per cent in March 2023.

Older age groups, such as 45-55 and above 55 years, maintained relatively stable enquiry volumes across the periods.

The moderation in credit demand comes amid a broader trend of a shift towards high-ticket loan segments, especially in home and two-wheeler categories.

However, consumption-led credit, such as personal loans, consumer durable loans, and credit cards, showed signs of stabilisation quarter-on-quarter starting from September 2024, suggesting early signs of recovery in these segments.

Overall, the report data pointed to a strong credit appetite in rural and semi-urban regions, which could support further financial inclusion and growth in these areas. (ANI)