However, the number of bank borrowers declined by nearly 13 million on a year-on-year basis. Banks had 370.1 million borrowers with ‘194 lakh crore of outstanding loans at the end of December 2025, compared with 383 million borrowers and ‘173.2 lakh crore of loans in December 2024.
The data also showed that 192 million borrowers – a little over half the total – were charged interest rates of 13% or above, although these loans made up just 6.3% of total outstanding credit. In December 2024, about 2.1 million borrowers had ’13 lakh crore of loans priced at 13% or more.
The number of borrowers paying less than 5% also declined. About 1.4 million borrowers held ‘87,546 crore of loans at rates below 5% in December 2025, compared with 1.8 million borrowers holding ‘73,990 crore a year earlier.
AgenciesData shows that borrowers raised ’26 lakh crore at rates between 5% to 7% in December 2025 as against ‘5.3 lakh crore loan for same rate a year ago. Among borrower categories, credit-card dues continued to attract the highest rates at 37.3%, slightly lower than 37.6% a year ago. Consumer-durable loans were the second-costliest category, with the weighted average lending rate rising to 14.53% in December 2025 from 14.23% a year earlier.
Interest rates charged to industries fell to 8.57% at the end of December 2025 – a near three-year low – down 89 basis points from a year earlier, reflecting improved liquidity conditions and competitive pricing by banks.
Policy rates have been lowered by 125 basis points since February 2025, and this has been transmitted to lending rates. The RBI mandates that change in the policy rate must be passed on immediately and proportionately for home loans and MSME loans, strengthening transmission. The fall in borrower numbers may reflect a diversification of borrowing patterns, with customers tapping non-bank lenders and fintech firms.