India's Credit Card Boom Turns Sour: Delinquencies Rise as Borrowers Juggle Multiple Loans
India's decade-long credit card boom is entering a challenging phase as rising delinquencies and increased borrowing across multiple loan products point to emerging stress in the unsecured lending ecosystem, according to a TransUnion CIBIL report.
The number of credit cards in circulation has surged from 1.4 crore to 5.2 crore over the past ten years, while outstanding balances have grown more than eight-fold to Rs 3.1 lakh crore. However, this rapid expansion has coincided with a deterioration in asset quality since 2022.
Delinquency levels in the 180 days past due category have risen from 5.8% in 2022 to 8.1% as of March 2026, the report said. This marks a reversal of the improving repayment behaviour seen between 2016 and 2020.
Credit cards no longer operate in isolation. The share of open credit cards within unsecured credit products has declined from 56% in 2016 to 38% in 2026, as consumers increasingly use multiple unsecured products simultaneously. The share of consumers holding other consumption-led credit in their wallet has doubled from 16% to 32% over the decade.
The report highlights a rise in 'high exposure users'—approximately 10% of cardholders who maintain high utilisation, use multiple unsecured credit products, and face higher risk. These borrowers, if missing two or more repayments across products, are substantially more likely to become seriously delinquent on credit cards.
Younger borrowers, particularly Gen Z consumers born between 1995 and 2010, are entering the market with more aggressive borrowing habits. Among cardholders with four or more years of experience, 22% have opened more than three personal loans in the last 24 months, and their delinquency rate stands at 8.7%.
The report warns that the growing overlap of credit products creates competing repayment obligations, making it harder for lenders to assess borrower risk using a single product in isolation. Card issuers now increasingly compete with small-ticket personal loans and consumer durable loans for lifestyle financing.
