The study also indicates that credit card penetration is very high in Ahmedabad as compared to other cities in the country
While credit cards and personal loans being the most availed form of credit in Ahmedabad, the borrowers from the city have higher chances of getting loans as they have better credit scores, revealed a study conducted by credit information companyCredit Information Bureau (India) Ltd (CIBIL).
The study also indicates that credit card penetration is very high in Ahmedabad as compared to other cities in India. Credit cards (34%) and personal loans (21%) are the most availed form of credit in Ahmedabad. Credit card and personal loan penetration in Ahmedabad is higher as compared to the pan India average.
According to the study borrowers with a credit score of 700 and above have a higher chance of getting their loan and credit card applications approved by banks. “More than 80 per cent borrowers in Ahmedabad have a CIBIL TransUnion Score greater than 700. Hence they have higher chances of getting loans or credit,” said Harshala Chandorkar, senior Vice President – Consumer Relations, CIBIL.
Talking about other finding of the sample study Chandorkar said, “CIBIL data also indicates that more than 90 per cent of new credit is sanctioned to borrowers above a score of 700. Banks and financial institutions today consider the score as a crucial parameter before sanctioning any new loan.”
The state of Gujarat has 52 per cent credit applicants who are less than 35 years of age as compared to the national average at 49 per cent.
Speaking about increasing consumer awareness on CIBIL she added, “We have seen a significant growth in consumers reaching out to us for their own credit reports and scores from across metros as well as Tier II & III cities. There has been more than 200 per cent growth since the time we launched our Consumer Relations operations in 2009.”
CIBIL is India’s largest credit information company that maintains information on over 305 million consumer trades and 15 million commercial trades.
Credit Sudhaar is India’s first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.
Courtesy : Business Standard