study/ Report from Home Credit India – ‘66.6% Indians are open to taking loans’.
Herebelow is a gist. Details are on the attached Press Release.
Highlights :
· Family aspirations and upgrading lifestyle is the primary reason for seeking loans by 46% Indians
· 33% of Indians are likely to purchase Consumer durables such as smartphones, refrigerators, TV etc. on EMIs to be able to upgrade lifestyle
· Loan culture penetrating deep in non-metro cities. Cities like Jaipur, Patna, Lucknow and Nagpur are driving this trend
About Home Credit India:
Home Credit India Finance Pvt. Ltd. is a local arm of the international consumer finance provider with operations spanning over Europe and Asia and committed to drive financial inclusion in India. The company is committed to drive credit penetration and financial inclusion by offering wide financial solutions that are simple, transparent and accessible to all. With largest penetration in sub Rs.10,000 category, Home Credit India has an employee base of over 15,000 and has been consistently expanding operations since its entry in 2011, with its operations spread over 179 cities across 20 States in India. The company has a strong network of around 29,000 points-of-sale (PoS) and is growing with a customer base of around9 million customers, driven by Pan-India expansion across major markets, a range of diversified and innovative products backed by superior customer experience. Home Credit India has been recognized by Aon Hewitt as a Regional AON Best Employer 2017 for employer excellence. For more information, visit www.homecredit.co.in
(Leader in sub Rs.10,000 category of consumer finance lending as per CRIF Report March 2019)
For more information, visit www.homecredit.co.in
66.6% Indians are open to taking
loans reports study
·
Family aspirations and upgrading lifestyle is
the primary reason for seeking loans by 46% Indians
·
33% of Indians are likely to purchase Consumer
durables such as smartphones, refrigerators, TV etc. on EMIs to be able to upgrade
lifestyle
·
Loan culture penetrating deep in non-metro
cities. Cities like Jaipur, Patna, Lucknow and Nagpur are driving this trend
|
Cities covered under
the survey:
1.
Delhi/NCR
2.
Mumbai
3.
Chennai
4.
Kolkata
5.
Bangalore
6.
Ahmedabad
7.
Chandigarh
8.
Jaipur
9.
Indore
10.
Lucknow
11. Nagpur
12.
Patna
|
This report was commissioned by Home Credit India, a
local arm of the international consumer finance provider with operations
spanning over Europe and Asia and committed to drive financial inclusion in
India. This report has released a fresh new perspective on India’s borrowing
habits. This study conducted by research agency Absolutdata has been
commissioned across 12 cities and 2,571 respondents have been evaluated to
provide a near to accurate pattern of savings, spending and borrowing behavior
in the country.
It’s for the family! The
desire to fulfil the needs and the wishes of the family tops the reasons for
taking a loan in the future:So while lifestyle is important, respondents have
revealed that fulfilling family needs and their wishes constitutes the single
topmost reason for people wanting to take a new loan at an average of 46%
nationally. Family orientation and needs is highest among people in Patna (61%)
followed by Lucknow (58%), Nagpur (56%) and Jaipur (54%).
Friends and Family not only feature at the top of
the survey for fulfilling needs, they also play the most important role in the
decision making process of the loan.
colleagues at 25.4%.
A financial advisor comes second at 22.4% as the
source of advice followed by sales representative of a loan provider at 21.8%;
20.9% people take a self-decision while availing loan, and do not consult
anyone.
People in Mumbai and Delhi are the most evolved in
terms of consulting a financial advisor before taking at loan at 44.2% and 38.8%
respectively; For other cities it is the non-formal sources for advice. The
people of Nagpur are the most self-assured when it comes to taking a loan and
do not consult anyone, taking their own decision to avail a loan at 50.8%. This
is followed by people of Kolkata at 32.3% and Ahmedabad (22.2%) respectively.
While the country is very positive towards loans, a
section of the respondents have also not been positively drawn towards the
concept of lending and borrowing and therefore have never taken a loan before. The
study identifies Key Behavioral Challenges that this section faces. 35% of the respondents say that “Having a
loan is a stressful feeling”. The second reason for loan aversion is that 32%
of respondents ‘believe in saving and spending’. The fear of not being able to
repay is the third reason why people do not take loans, said 32% respondents. The
burden of documentation and hassle at 31% is another reason why people do not
prefer loans; so, they usually end up borrowing from friends and family, said 28%
of the respondents. In fact, among the least important reasons for not taking a
loan is that the employer provides with advance salary, if needed(20%), the
process is rigorous and time consuming (25%) and the fear of repercussion in
case of a default (26%). Another reason cited for not taking a loan is the lack
of awareness of different types of loans (27%)
However, what stands out as a median reason for not
taking a loan before, is that 28% of the respondents indicated the take the
loans from their friends and family. The study also shows that a staggering
57.3% of respondents have never availed a loan before which means that cash is
still king, Three-fourth of the people are most comfortable in using cash. This
is followed by debit cards which are being used by 80% people, half of them
using them at least once a week or more. Only 26% people use credit cards and
40% use net-banking, pointing that digitization of banking services is the road
ahead.
Home
Credit has been working aggressively in India and has been able to establish
itself as a leading financial products and services provider. Gathering intel with
knowledge partners to have a deeper understanding of the market trends,
consumer behavior patterns is a continuous process at Home Credit across each
market. This enables a focused, targeted customer centric proposition across
all its product offerings. Almost50% of Home Credit’s customers are the First
Time Borrower (FTB) who have no borrowing and repayment history with credit
rating agencies. The company has strong underwriting capabilities, risk
assessment, new market entry and customer focused approach have ensured that
the company has made the right disbursements of loans in a responsible manner
as well as has been able to advise and help customers plan their finances
better. All this has helped to build Home Credit as a lender of choice and help
the company retain its differentiated position in the market. The company is
committed to driving credit penetration and broadening financial inclusion
through responsible lending. This, the company aims to do through offering
financial solutions that are simple, transparent and accessible to all, backed
by trained financial advisers who are able to drive understanding of credit,
assess the borrower and help them to ascertain the right borrowing.
Supporting quote: Marko
Carevic, Chief Marketing & Customer Experience Officer, Home Credit India:“We’ve made concerted efforts to broaden the
ambit of financial inclusion across the world and India is a key market for us
by virtue of the potential it offers. After China and Russia, India is now
showing signs of a new resurgence and we have seen the evolution of the
customers since our entry in 2012. The survey is yet another attempt to
understand our customers so that we can customize our product offering to the
need. We continue to build on the collective market intelligence coupled with
our proprietary methods and technologies to evaluate all borrowers. As a
company propagating responsible borrowing, we also effect responsible lending.
We are committed to enhancing the quality of life through our financial
products and services for our customers.”
About Home Credit India:
Home
Credit India Finance Pvt. Ltd. is a local arm of the
international consumer finance provider with operations spanning over Europe
and Asia and committed to drive financial inclusion in India. The company is
committed to drive credit penetration and financial inclusion by offering wide
financial solutions that are simple, transparent and accessible to all. With
largest penetration in sub Rs.10,000 category, Home Credit India has an
employee base of over 15,000 and has been consistently expanding operations since
its entry in 2011, with its operations spread over 179 cities across 20
States in India. The company has a strong network of
around 29,000 points-of-sale (PoS) and is
growing with a customer base of around 9 million customers, driven by Pan-India expansion across major markets, a range
of diversified and innovative products backed by superior customer experience.
Home Credit India has been recognized by Aon Hewitt as a Regional AON Best
Employer 2017 for employer excellence. For more information, visit www.homecredit.co.in
(Leader in sub Rs.10,000
category of consumer finance lending as per CRIF Report March 2019)
For more information, visit www.homecredit.co.in
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