Rising Loan Demand in UP-Bihar: Key Insights from CIBIL Report.
The number of borrowers in India is steadily increasing. Two states, in particular, stand out for having the highest number of borrowers: Uttar Pradesh (UP) and Bihar. Let’s take a look at the full picture.
Borrowing is a widespread practice in India. People frequently turn to loans—which are easily accessible—to meet their needs, whether for purchasing a home, buying a vehicle, or fulfilling other requirements. Access to credit is no longer limited to large, developed states like Maharashtra and Tamil Nadu; states such as Uttar Pradesh, Bihar, and Madhya Pradesh are also rapidly catching up in terms of borrowing.
Insights from the CIBIL Report
A recent report by TransUnion CIBIL reveals that approximately 75% of the country's population has availed formal credit at least once. The report analyzes data spanning from March 2017 to March 2026, highlighting that a growing number of people have integrated into the banking and credit systems over the past few years.
State-wise breakdown of active credit users:
| State | March 2017 | March 2026 |
|---|---|---|
| Uttar Pradesh | 8% | 11% |
| Madhya Pradesh | 4% | 6% |
| Gujarat | 5% | 5% |
| Maharashtra | 12% | 10% |
| Karnataka | 7% | 7% |
| Bihar | 3% | 5% |
| West Bengal | 4% | 5% |
| Telangana | 5% | 5% |
| Andhra Pradesh | 6% | 6% |
| Tamil Nadu | 11% | 9% |
UP and Bihar Lead in Borrowing
Historically, credit facilities were primarily concentrated in industrialized and developed states like Maharashtra and Tamil Nadu. However, this trend is now expanding to other parts of the country. States like Uttar Pradesh, Bihar, and Madhya Pradesh are witnessing a rapid surge in the number of borrowers and credit-related activities. UP and Bihar top this list, indicating that these two states account for the highest volume of borrowing.
Slowdown in New Borrowers
The report also notes a decline in the rate at which new individuals are availing credit for the first time. Consequently, bringing new customers into the credit ecosystem will present both a significant challenge and an opportunity for banks and financial institutions in the near future. It is evident that India's credit market is no longer confined to a select few states; the rising demand for loans in smaller towns and other states reflects the country's expanding financial landscape.
