What Does A New Study Say About The Indian Financial Market In 2020-21?

According to some more recent reports from 2020 & Credit Bureaus Reports, India has a total of 622 million Internet users, out of which 500 million are smartphone users, which is the second-highest in the world.

Now let's take a look at the financial market.

Consumer credit markets are growing rapidly, equivalent to $ 612 billion in December 2020 at a three-year CAGR of 18 percent.

If you look at retail loans which have doubled since 2017, the increase in active retail loans is 1.7 times between 2017 and 2020.

Let's now compare different types of loans and their growth from 2017 to 2020.

Education loans remain at the same position from 2017 to 2020, which is $ 12 billion.

Home loans increase 20 to 25 percent, reaching more than $ 290 billion.

Auto loans increased by almost 50 percent, standing at $ 50 + billion.

Credit cards increase by almost 100 percent, standing at $ 22 billion.

Commercial vehicle loans increased a staggering 150 percent, which is now $ 37 billion. We can say this growth was due to the increase in demand for online taxis and buses.

Personal loans also saw 150 percent growth from 2017 to 2020, standing at $ 82 billion.

Business loans and LAPs have grown nearly 200 percent, to $ 19 billion and $ 68 billion.

Starting in 2020, Covid-19 affected credit markets and weakened consumer confidence; shows a 70% decrease in credit enquiries in the second quarter of 2020 compared to the first quarter of 2020. Consumer confidence fell 25% during the national lockdown. People in India are now more aware of credit reports and credit scores than before, a study shows a growth of almost 3 times the number of consumers checking their credit rating in 2020 compared to 2018. The consumer checks their credit scores more in 2020 than in the 2018 study that shows us that the number doubles and a person checks credit scores several times in a year. When we talk about growth in the average consumer loans taken per borrower since 2017, it has experienced a 45% jump.

This study shows us that from 2017 to 2020 the Indian market grew at a very good speed, but during the lockdown and now in 2021 it is recovering from that slowdown that occurred due to the lockdown. We can say that it will soon get back on track and will continue to grow in the future.

You can read our Blog Easy and Convenient Way to Get a Loan in India

Disclaimer: This information has been collected through secondary research and Chakde Credit is not responsible for any errors in the same.