The commercial credit portfolio of Indian micro, small, and medium enterprises grew 11% YoY in Jul-Sep due to accelerating economic activity. The credit exposure reached Rs 28.2 lakh crores, and supply volumes grew by 20% YoY. Technology played a pivotal role in enhancing credit flow.
Youngsters are the major drivers of loan growth in the country. The credit growth comprised mainly of riskier segments like credit cards, personal loans, etc
Banks get new tool to assess new to credit customers
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Such new to credit customers were historically difficult to assess because they have no formal credit history. But they are the fastest growing borrower group for banks to tap, though lenders were cautious in giving them loans as there was no way to assess their default probability.
Agencies
On a monthly basis, approximately 24% of enquiries are made for loan applications by individuals who do not have a credit history. A majority of the enquiries come from rural and semi urban areas.
India s oldest credit assessment company TransUnion Cibil has launched an eligibility score for new to credit customers who have never taken a loan or have used a credit card and hence have no formal credit history.