India is reportedly witnessing an increase in consumption of lending products such as personal loans and credit cards as the nation’s economy is experiencing a slump of late.
While it’s quite evident for unemployment figures to rise and salary delays to occur during an economic slowdown, people are forced to borrow from their credit cards or loan lenders to make ends meet at the same time.
Eventually, people will resort to their credit cards and avail personal loans to meet their everyday expenses. With demand for such products on the rise, the credit balances are also being pushed to new levels.
Recently, TransUnion CIBIL had released a report – India Retail Credit Trends – which indicated that Q3 of CY 2019, i.e. July 2019 – September 2019 witnessed a significant rise in consumer credit due to the increasing demand for lending products such as credit cards and personal loans.
The report also pointed out that credit card balances and the number of credit accounts had risen by over 40.7% during the year. The figures stood at only 29.8% during the same time the previous year.
According to the report, the total number of active credit cards in circulation stood at 44.5 million, with total balances amounting to Rs.1,090 billion.
Also, personal loan accounts witnessed a spike of over 133.9% with loan balances growing by 28% in Q3 CY 2019 when compared to the last year.
For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in
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