Credit awareness is increasing among consumers across the country. As the number of profiles increases, so does the number of consumers in both metro and non-metro areas. The recently-released ‘Sybil for Every Indian’ report finds similar indications. Some of the features of the report are as follows-

TransUnion CBIL’s new report titled ‘CIBIL for Every Indian’ released recently paints a stark picture of credit usage and perceptions of self-monitoring consumers across the country. It found that the number of consumers checking their credit profiles for the first time increased by 83% between October 2021 and September 2022. Since TransUnion CIBIL launched its direct-to-consumer service in 2009, 6.11 million customers have self-monitored their credit profiles. The report also revealed that 2.38 million consumers registered for self-monitoring for the first time between October 2021 and September 2022, and 71% of this increase (16.8 million consumers with data-rich) came from non-metro areas.

Mr. Rajesh Kumar, Managing Director, and CEO, of TransUnion CIBIL, said, “Analyzing the data of over 6.11 million self-monitoring consumers, we can see that Indians are taking a more active. In addition to this, digitization, smartphones, and increased internet connectivity and usage in semi-urban and rural areas, have dramatically improved access to credit. Consumers are the biggest beneficiaries of this evolution. Credit awareness is increasing among non-metro residents.”

This report shows that there has been significant improvement in the way Indians monitor their credit. Consumers in non-metro areas who received a new credit check between October 2021 and September 2022 accounted for more than 76 percent of the overall number. According to the report, debt awareness among Generation Z consumers increased by 2.9 times during the period from October 2021 to September 2022 compared to the previous 12 months. Their credit management is good, they are using it at a young age.

Credit Awareness According to reports directly proportional to the credit discipline, consumers are becoming more credit conscious. About 47% of consumers improved their credit profile (CIBIL score) within six months of checking their CIBIL score and report. Thirty-five percent of self-monitoring consumers opened a new line of credit within three months of monitoring, compared to only 6.2% of non-monitoring consumers.

Non-metro areas are emerging as an increasingly loan-active market over the years, with 71% growth in 2022. The majority of new-credit customers have come from non-metro areas in India over the past four years, with these areas home to more than 76 percent of overall self-verified new-credit customers between October 2021 and September 2022.

The consumer credit market in India is evolving rapidly. Because more and more female borrowers are taking responsibility to improve their credit health. Between October 2021 and September 2022, the number of female self-monitors increased by 88% compared to the previous 12 months. Some Features –
l Among female consumers who started monitoring their credit profile between October 2021 and September 2022, 62% resided in non-metro areas.
l October 2021 in the number of Generation Z self-monitoring women, with a 3.4-fold increase
To September 2022 there has been a significant increase compared to the same period of the previous year.
Young Indians are becoming cautious as borrowers

Generation Z consumers have shown a significant increase in self-monitoring of their credit scores over the past few years. Debt awareness among Generation Z consumers increased 2.9 times between October 2021 and September 2022 compared to the previous 12 months. About 23.8 million such consumers, born between 1982 and 2000, began monitoring and registering their credit profiles during this period. This represents an increase of 83% compared to the same period last year.