NTC Borrowers Emerge as risk-calibrated growth engine, reach 4.4 Crore; Women’s Participation Rises to 41 percent: CRIF High Mark Report

Mumbai, Apr 29: CRIF High Mark today released its latest report, “Bridging The Gap: Unlocking Growth from New–to–Credit Borrowers”, highlighting the expanding role of first-time borrowers in driving credit growth and financial inclusion in India.

The report notes that as of Feb’26, the total credit active population reported to the consumer bureau stood at 29 crore. Correspondingly, the new–to–credit (NTC) borrower base in India has expanded steadily, with borrowers entering the formal credit system rising from 3.6 crore in 12M Ending Feb’22 to 4.4 crore in 12M Ending Feb’26, reflecting a CAGR of 5.1%.

NTC borrowers continue to be key contributors, accounting for 17.8% of overall borrowers who originated loans in the 12 months ending Feb’26. However, this comes amid a more calibrated and selective lending approach by financial institutions, with the share reducing from 23.5% in the 12 months ending Feb’2

A key trend identified is the rising participation of women borrowers, whose share in NTC accounts has increased from 33% to 41% over the past five years, indicating growing financial inclusion and entrepreneurial participation.

Key insights from the report include:

• NBFCs lead NTC lending, contributing over 60% of total NTC accounts, while banks remain relatively cautious
• Consumer durable loans dominate as the primary entry product (32% share of NTC accounts), followed by gold and two-wheeler loans. These three loan categories together accounted for about 60% of the overall NTC account distribution for the 12M ending Feb’26.
• Borrowers show a clear progression path, typically starting with small-ticket loans and gradually moving toward more structured credit products
• The 26–35 age group drives the majority of NTC originations for Consumer Durables, Gold Loans, and Business Loans, while younger borrowers (<25) dominate personal and two-wheeler loans
•  Beyond Top 100 (BT100) cities account for over 50% of NTC originations for major NTC loan types, highlighting strong demand from semi-urban and rural markets

Encouragingly, the report also highlights improving credit behaviour among first-time borrowers. Nearly 67% of NTC borrowers transition to low-risk or very low-risk categories within one year of entering the formal credit system, indicating strong repayment discipline when supported by appropriate product structures and risk-calibrated lending.

Women borrowers are increasingly active across consumer durable, gold, and business loans, with business loans emerging as a key driver of female entrepreneurship. Geographically, states such as Uttar Pradesh, Tamil Nadu, and Maharashtra lead in women-led NTC originations.

The report underscores that while lenders are becoming more selective, the NTC segment continues to offer scalable, calibrated growth opportunities, particularly across emerging geographies and younger demographics.