Journalism of Courage
This is an archive article published on November 13, 2019
‘Millennials among the most credit-conscious consumer segments’
Despite their high appetite for credit, the Cibil study revealed that millennials are one of the most credit-conscious consumer segments in the country.
While 51 per cent of self-monitoring millennials come from Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh and Delhi collectively, millennials from Gujarat ranked highest when it comes to credit-consciousness with an average score of 747.
The number of self-monitoring Indian millennials — the generation of people born between 1980 and 2000 — grew by 58 per cent between 2016 and 2018, becoming one of the most credit-conscious consumer segments, while credit-conscious non–millennial consumers grew by just 14 per cent, recent study by TransUnion CIBIL has said.
Despite their high appetite for credit, the Cibil study revealed that millennials are one of the most credit-conscious consumer segments in the country.
“These credit-conscious millennials self-monitor their credit scores regularly and have an average CIBIL score of 740,” it said.
While 51 per cent of self-monitoring millennials come from Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh and Delhi collectively, millennials from Gujarat ranked highest when it comes to credit-consciousness with an average score of 747.
This was followed by Haryana at 743, and Rajasthan at 742. Featuring at the bottom of the list was Delhi with an average CIBIL Score of 734 and Tamil Nadu at 736, Cibil said.
As per the study, self–monitoring millennials show a preference for unsecured loans, with credit cards, personal loans and consumer durable loans contributing to 72 per cent of all loans availed by this consumer segment.
“Among secured loans, two-wheeler loans and auto loans had the highest demand, jointly contributing to 9 per cent of the total credit pie,” Cibil said.
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Sujata Ahlawat, vice-president and head-direct to consumer interactive, TransUnion CIBIL, said: “It is encouraging to see the rising trend in credit consciousness and good financial behaviour exhibited by Indian millennials. It’s also interesting to see that many lenders have started reaching out to this demographic with relevant product offerings. Since many millennials are at the beginning of their credit journey, reaching out to them at the right time will help lenders engage with them throughout their credit lifecycle.”
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