This may not be an immediate cause for alarm, however, as Indian borrowers may be more cautious than their Western counterparts, according to Lending History.
about a third fresh Loan A report by credit bureaus indicated that extended by banks and other lenders were below main borrowers, compared to 28% in the second quarter of 2019.
Rajesh Kumar, Managing Director and CEO, TransUnion CIBIL, said, “Credit performance has consistently improved year-on-year, with generally lower delinquency levels.” “It is time for lenders to reach out to identify multiple credit-worthy consumers across India’s geography and provide easy and quick access to credit while providing a positive experience.”
To be sure, research by regulators also doesn’t ring alarm bells. An assessment of the stability of household borrowing over different periods of time, including the eras of the global financial crisis and pandemic, by economists from the Reserve Bank of India (RBI) shows that the financial liabilities of households have remained within sustainable limits over the past three decades. ,
CIBIL’s latest June Credit Market Indicator, a comprehensive measure to analyze changes in credit market health, capture demand, supply, consumer behavior and performance is at 99.9%. It is up four points from March 2022, and a significant 21 points from its low. 78 at the height of the COVID-19 surge in January 2021.
Credit bureau research has shown that the share of young Indian consumers taking loans has steadily increased over the past two years. In June 2022, a third of new loans were among consumers aged 18 to 30, an increase from 22% in 2020.
In June 2022, 23% of new loans were among consumers in metro areas, compared to 25% in 2019, with the percentage of new loans in non-metro areas increasing by two to four per cent over the past three years.