The share of first-time borrowers in the credit market has decreased over the past five years as lenders prioritize customers with proven repayment histories. This shift has led to consumer durables financing, especially mobile phone loans, becoming the primary entry point for new borrowers, overtaking traditional loans like two-wheelers and agriculture.

• 01Lenders are increasingly favoring customers with established repayment histories.
• 02The proportion of first-time borrowers in the credit market has been declining for five consecutive years.
• 03Consumer durables financing has emerged as the main entry point for new borrowers.
• 04Mobile phone loans have surpassed traditional loans in popularity among first-time borrowers.
• 05Traditional products like two-wheeler and agriculture loans are becoming less common for new-to-credit customers.

The declining share of first-time borrowers may limit access to credit for new customers, impacting their ability to finance essential purchases.