Credit information company TransUnion Cibil has flagged early signs of stress in select retail loan segments, even as overall demand for credit has improved following the GST rate rationalisation.

In its Credit Market Indicator report, Cibil said asset quality in large property loans showed improvement, with 90-days-plus delinquencies declining 29 basis points year-on-year to 1.4 per cent as of September 2025.

However, stress is building in micro loans against property, particularly in the ₹2 lakh to ₹10 lakh ticket-size segment, where delinquency levels rose 45 basis points year-on-year to 3.3 per cent. Two-wheeler loans also witnessed deterioration in asset quality, with delinquencies exceeding 90 days increasing 22 basis points to 2.2 per cent during the quarter ended September.

On the demand side, the report said GST 2.0 has supported a pickup in retail credit, especially in vehicle and consumer durable loans.

Credit information company TransUnion Cibil has flagged early signs of stress in select retail loan segments, even as overall demand for credit has improved following the GST rate rationalisation.

In its Credit Market Indicator report released on Monday, Cibil said asset quality in large property loans showed improvement, with 90-days-plus delinquencies declining 29 basis points year-on-year to 1.4 per cent as of September 2025.

However, stress is building in micro loans against property, particularly in the ₹2 lakh to ₹10 lakh ticket-size segment, where delinquency levels rose 45 basis points year-on-year to 3.3 per cent. Two-wheeler loans also witnessed deterioration in asset quality, with delinquencies exceeding 90 days increasing 22 basis points to 2.2 per cent during the quarter ended September.

On the demand side, the report said GST 2.0 has supported a pickup in retail credit, especially in vehicle and consumer durable loans.

However, younger borrowers appear to be exercising greater caution. The share of loan enquiries from borrowers aged 26-35 declined to 38 per cent in the September quarter from 40 per cent in the same quarter over the past two fiscal years. Enquiries from those below 25 years eased to 19 per cent from 20 per cent a year ago.

In contrast, the share of borrowers aged 36-45 rose. The proportion of new-to-credit customers in origination volumes slipped by one percentage point to 16 per cent, reflecting lender preference for existing customers.