More than half of all earners in India are under the burden of loans or credit cards

Mumbai: The trend of Indians taking loans and using credit cards has increased. Half of the 200 million people working in India are credit active, meaning they have taken at least one loan or have a credit card, according to a report by the Credit Information Company (CIC).

According to a report by Transunion Sibyl, credit institutions are rapidly approaching the saturation level of new customers as half of the holders are from the bank's existing customer base.

The working population in India is estimated to be 50.04 crore in January 2021, while there are 200 crore people in the retail credit market who are credit active. The most important thing here is that the worries that the borrowers could not get out of the trap of the lenders who could not be controlled are now over and they are now trying to get money from elsewhere.

Over the past decade, banks and lenders have given more priority to retail loans than to corporate loans, but there have been concerns about stability in the segment following the epidemic.

According to CIC figures, people in rural and semi-urban areas, with a population of 200 million, are the main market for people between the ages of 15 and 6, and credit penetration in this segment is only 3 per cent. In the new credit sector, products including personal loans and consumer durables loans are becoming more popular among people under the age of 40 and people outside Tier-1 cities.

The share of women in New to Credit is very low. The proportion of women loan holders in auto loans is 12 per cent, home loans 21 per cent, personal loans 3 per cent and consumer durables loans 4 per cent.