India’s Credit Card Users Increasingly Turn to Multiple Loan Products

India's consumer credit market is undergoing a significant transformation as lenders adjust to changing borrowing patterns. A new report titled Beyond the Swipe by TransUnion CIBIL highlights how the role of credit cards is evolving within the broader consumer lending ecosystem.

While credit card adoption has expanded rapidly over the past decade, consumers are increasingly using a mix of credit products instead of relying on cards alone. The findings suggest that future growth may depend more on strengthening existing customer relationships than acquiring new borrowers.

India Credit Card Market Expanded Sharply Over the Last Decade

The report shows that the number of live credit cards in India increased from 2.1 crore in March 2016 to 10.7 crore in March 2026. During the same period, the number of credit card consumers rose from 1.4 crore to 5.2 crore, reflecting strong growth in credit adoption.

Outstanding credit card balances expanded even faster, increasing from ₹0.4 lakh crore to ₹3.1 lakh crore over the decade. These figures highlight the rapid expansion of the country's organised consumer credit market and the growing use of formal lending channels.

Credit Cards Losing Share in Consumption Credit Market

Despite strong growth in card issuance and balances, credit cards now account for a smaller share of overall consumption credit. According to the report, credit cards represented 56% of outstanding balances across key consumption-credit products in March 2016.

By March 2026, that share had declined to 38% as borrowers diversified across unsecured lending products. Small-ticket personal loans, consumer durable financing and loan-on-card products have emerged as important alternatives, creating a more competitive landscape for lenders.

Borrowers Increasingly Use Multiple Credit Products

Consumer borrowing behaviour has become more complex over the past 10 years. Among credit card holders, the proportion of consumers who also held another consumption-focused loan increased from 16% in 2016 to 32% in 2026.

At the same time, the share of consumers holding 3 or more credit cards rose from 12% to 22%. These trends indicate that borrowers are becoming more comfortable using multiple lenders and products to meet different financing needs.

Banks Focus on Becoming Top-of-Wallet Lenders

The report notes that lenders are increasingly competing to become the preferred or "top-of-wallet" credit provider for customers. Instead of focusing only on adding first-time borrowers, banks are seeking a larger share of spending, balances and engagement from existing card users.

This shift is also visible in outstanding balances, with the average card balance per consumer rising from about ₹31,000 in March 2016 to nearly ₹65,000 in March 2026. The data suggests that customer retention and deeper engagement have become strategic priorities within the credit card industry.

Read More: Banks Increase Renewable Energy Financing by 7% in April 2026.

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Conclusion

The TransUnion CIBIL report points to a structural shift in India's consumer credit market. Credit cards continue to grow in absolute numbers, but they now compete with a wider range of lending products for consumer spending and borrowing needs.

Borrowers are increasingly using multiple credit products and maintaining relationships with several lenders simultaneously. As a result, future growth in the credit card segment is expected to be shaped more by deeper customer engagement and higher wallet share than by the pace of new customer acquisition alone.

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