MUMBAI: TransUnion CIBIL’s December 2025 Credit Market Report highlighted a year-on-year increase in early-stage delinquencies for micro-loans secured against property (micro-LAP) and micro-housing loans. The report indicates that lenders are now focusing on borrowers with credit scores exceeding 750 and a solid credit history.
According to the report, delinquency rates in the micro-LAP segment rose by 45 basis points to 3.3% as of September 2025. Early delinquencies, defined as loans overdue by 90 days or more within 12 months, increased by 29 basis points year-on-year to 2.2% for loans originated in the quarter ending September 2024, which is notably higher than the overall LAP early delinquency rate of 1.6%.
In the small-ticket housing loan segment, early delinquencies grew by 19 basis points year-on-year to 0.8% for originations in the same quarter, compared to an overall early delinquency rate of 0.5% for housing loans.
“Proactive monitoring within the micro-LAP and micro-home loan categories is essential for lenders,” stated Bhavesh Jain, managing director of TransUnion CIBIL.
The bureau also identified emerging stress within commercial vehicle (CV) and two-wheeler loan segments.
“We observe two distinct trends. On one hand, smaller-ticket loans in these areas have seen an uptick in delinquencies this past quarter,” Jain remarked. “Lenders must evaluate repayment capacity and overall leverage, as these borrowers often have multiple credit obligations.”
