A report by the credit bureau shows that the number of consumers monitoring their credit profile grew by 51 percent year-over-year (y-o-y) in FY’23-24. This means that that 43.6 million more consumers are monitoring their credit status, the report said. Among the non-metro regions, the number of borrowers who have started monitoring their credit status has gone up by 59.6 percent, 61.8 percent and 47.5 percent in rural, semi-urban and Urban area respectively.
The report highlights that self-monitoring consumers tend to apply for credit opportunities after reviewing their credit history. Post-monitoring, the ownership of two-wheeler loans grew by 50%, consumer durable loans by 41%, gold loans grew by 38% and credit cards grew by 14%. However, personal loans decreased by 16%.
Among the top 10 states with the highest credit monitoring populations, Kerala, Tamil Nadu and West Bengal led the growth in self-monitoring consumers in FY23-24 over FY22-23.
Significantly, young borrowers are becoming more credit disciplined and conscious according to the report. The number of Gen Z – borrowers born after 1996- tracking their credit scores grew one and a half times in FY’23-24. Ninety one percent of new credit users were Millennials- borrowers born between 1981 and 1996- and Gen Z in FY23-24.
” India is rapidly becoming financially savvy and credit conscious. With many credit institutions offering better terms and conditions for borrowers who have a higher ( credit )score, it is beneficial for consumers to monitor and maintain a healthy credit profile for availing financial opportunities on better terms,” said Bhushan Padkil, senior director and head of consumer interactive (Direct-To-Consumer) India at TransUnion CIBIL.The report also reveals that commercial entities checking their Company Credit Report (CCR) for the first time have grown by 12% (YoY) in FY23-24.
