In the midst of an ongoing slowdown in the economy, people taking loans have become smartly cautious during the past year, online financial products seller BankBazaar said in a recent report.
Instead of keeping their major goals in life on hold, credit seekers are achieving them by being cautious, the company said. The company based its findings on the basis of 322 million visits on its website in 2019.
The report reviewed credit purchase trends in India during the last year and presented the outlook for 2020. The report said that the demand for the high-value loans had been sluggish in the past year, though the number of people taking loans of lower ticket sizes continued to rise.
The company said that the contribution of home loans under Rs 30 lakh increased to 72 per cent of the total number of applications mainly fuelled by people buying a home for the first time.
In the car loans segment, there was a significant fall witnessed in the highest car loan ticket size, however, the average car loan ticket size remained steady, the report said.
The company claimed that the divide between metros and non-metros was dwindling in terms of credit products. Explaining it further in terms of car loans, the report said that the average car loan ticket size in the metros was Rs 5.7 lakh while that in the non-metros was Rs 5.5 lakh.
In terms of credit cards, people are increasingly becoming “credit card pros” by maximizing card benefits and enjoying exclusive lifestyle privileges. The consumers turned to the diverse benefits offered by premium cards which witnessed a 30 per cent growth, the report said.
Customers between the age group of 26 and 35 were the primary drivers and there was a 43.38 per cent growth in card applications segment.
The report said that women applicants continued to come out strongly in all categories, be it loans or credit cards. The difference between the average personal ticket size for women (Rs 2.55 lakh) and men (Rs 2.67 lakh) was low, and in the case of home loans, the average ticket size for women (Rs 25.64 lakh) continued to be higher than that of men (Rs.23.72 lakh).