New loan originations slows as young borrowers decline

TransUnion CIBIL reports a two-year low in new loan originations, driven by decreased demand from younger consumers and a shrinking share of New-To-Credit individuals in the fiscal year ending March 2025. Credit enquiries from borrowers aged 30 and below have declined, alongside cautious lending practices. However, anticipated repo rate cuts may stimulate credit supply, particularly in the home loan segment.

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