According to a study by credit bureau TransUnion CIBIL, Millennials – in the 26- 41 age group and Gen Z – in the 10-25 age group constituted 94% of new-to-credit consumers between October 2021 and September 2022. Gen Z borrowers increased their credit monitoring 2.9 times between October 2021 and September 2022, compared to an overall increase of 1.8 times for the entire self-monitoring base.
“We find that young Indians from our base today are showing an increasingly pragmatic approach to their finances, and we see a marked increase in women, semi-urban and rural consumers. Digitisation, smartphone and internet penetration in semi Uday, Managing Director & CEO, TransUnion CIBIL said, “Access to credit has improved rapidly in both urban and rural areas. Rajesh Kumar, “Their exposure to credit starts earlier, and they are taking full ownership of their credit utilization and behavior.
Self-monitoring borrowers in non-metro locations increased by 96% between October 2021 and September 2022, compared to the same period last year, while metro locations saw a growth of 58%. Among the top 15 states with the highest credit monitoring population, Andra Pradesh, A state in Eastern India And Karnataka TransUnion CIBIL said top growth in self-monitoring consumers. The number of self-monitoring women borrowers grew 2.1 times between October 2021 and September 2022, compared to 1.8 times growth among male consumers. As a result, the share of female self-monitoring users has increased from 16% to 18% in this period as compared to the same period last year.
The study noted that borrowers monitoring their credit seem to be making a conscious effort to improve their credit profile. Overall, 47% of self-monitoring borrowers improved their credit scores in the six months between October 2021 and September 2022 when their scores were monitored, compared to 42% of non-monitoring borrowers.