The first quarter of 2021 started off on a promising note, with the average note size for home loans climbing to Rs 28.43 lakh from Rs 27.74 lakh in the previous quarter.
Demand for home loans has picked up after the lockdown and the easing of restrictions, while the average size of personal loans has fallen, according to a recent report by BankBazaar.
The first quarter of 2021 started off on a promising note, with the average note size for home loans climbing to Rs 28.43 lakh from Rs 27.74 lakh in the previous quarter. This dropped with the second wave, in the second quarter, but since the third quarter ticket sizes have picked up.
The fourth edition of BankBazaar Moneymood 2022 sheds light on credit buying trends in India in 2021 and outlines the outlook for 2022.
According to the report, almost 70% of BankBazaar customers have a credit score above 700 points, with 36% having a score of 800 points or more.
According to the report, women are more aware of their financial habits than men, which is reflected in their credit scores. Over 72% of women scored 700 or more, compared to 66% of men. Even in the high score category, 40% of women reported scores above 800, compared to 35.6% of men. Overall, employees have better scores than the self-employed. Here, 69.2% of employees have a score of 700+ compared to 61.25 self-employed. Only 27.5% of the self-employed have scores above 800 compared to 40% of employees.
Commenting on the same, Adhil Shetty, CEO of BankBazaar.com, said: “Over the past few years there has been greater transparency on how interest rates on credit products are set and the role of the credit score in the whole process. Therefore, people understand the need for good credit ratings and actively follow them. Women, in particular, are more successful in maintaining a good credit rating and thus improve their chances of accessing credit. Nevertheless, there are gaps to be filled. »
“While 67% of people who check their credit score on BankBazaar had a score of 700+, only 36% of them had a score of 800+ – a score that would get you the best rate on any any credit product from most financial institutions. . It is for this reason that our first co-branded credit card has regular credit status reporting as one of its USPs,” he said. -he adds.
Demand for home loans rebounds
2021 was the year of the turnaround after the pandemic for real estate loans. Despite the reversals of the second wave of the pandemic, the year was a period of growth. The first quarter of 2021 has started on a promising note, with the average note size for home loans climbing to Rs.28.43L from Rs.27.74L in the previous quarter, according to data from BankBazaar. This dropped with the second wave, in the second quarter, but since the third quarter ticket sizes have picked up.
Personal loans are getting smaller
The average note size for personal loans fell for the fourth consecutive year from Rs 1.92 lakh to Rs 1.86 lakh. The average ticket size for women at Rs 1.87 lakh was slightly larger than that for men at Rs 1.86 lakh. The average size of non-metro loan notes dropped sharply to Rs 1.73 lakh this year from Rs 2.19 lakh last year. Metros, on the other hand, reached an average loan ticket size of Rs 1.91 lakh compared to last year’s average of Rs 1.87 lakh, surpassing non-metros. The easing of the average note size for loans follows industry trends following the tightening of unsecured credit policies as well as the rise of small and very small loans such as “buy now, pay later” loans .
“The constraints of the pandemic have heightened the importance of credit cards as the first line of credit as well as the simplest form of payment. Coupled with easier accessibility through contactless application processes through Digital KYC, demand for credit cards has rebounded strongly and continues to rise. Over the coming year, we expect to see a similar acceleration in lending segments as new originations return to pre-COVID levels thanks to Digital KYC,” said Pankaj Bansal, Chief Commercial Officer of BankBazaar.com .
Fuel cards with a vengeance
Credit cards have grown in popularity by leaps and bounds. Two very interesting trends emerged. This first was the nearly 10-fold increase in demand for fuel cards. Soaring fuel prices are driving consumers to seek out any option to lower their fuel prices, and fuel card rewards and benefits allow them to do just that.
The share of fuel cards rose to 13.1% of all cards, compared to 4.95% last year. With fuel prices still showing no signs of falling and offices and schools opening slowly, demand for fuel cards is expected to remain high for the near future.
As home shopping took center stage, rewards cards rebounded strongly to grow more than 100% year over year. With personalized rewards, cash back, and offers on online and offline purchases for essentials, luxuries, lifestyle spending, and entertainment, Purchasing Cards are more appealing than ever, and demand is also expected to increase in the coming year.
The second very interesting trend in credit cards has been the number of women opting for credit cards. The percentage of female credit card customers has increased by nearly 50%, from 8.41% last year to 12% this year. While the number of women opting for credit cards has increased across the board, the change is most noticeable among women under 25. The under 25 age group was the most aggressive in credit card adoption and grew sharply by 175% over all other cohorts, which grew by around 100%.