Looking for trends in India’s personal finance market? Let’s take stock of the key insights garnered from the Moneymood 2020 report presented by BankBazaar.
BankBazaar, India’s leading online marketplace for financial products has launched the second edition of the BankBazaar Moneymood® 2020 report. It offers insights from the credit purchase trends in India in 2019 and presents the outlook for 2020. As per the report, regardless of the economic slowdown, Indians are achieving them by being smart and cautious when taking credit instead of putting their major life goals on hold.
Moneymood® 2020 is the second edition of BankBazaar’s annual report that sheds light on how different credit products such as Personal Loans, Home Loans, Car Loans, Credit Cards, etc., have fared in the last year. The report, generated in-house by BankBazaar, has been compiled after analysing internal company data generated from over 322 million visits to BankBazaar’s website in 2019. It presents an accurate picture of India’s personal finance market in the year gone by and gives an idea of what to expect in the coming year. Trends are segregated based on metros & non-metros, gender, and age.
The report indicates that although the demand for high-value loans has been sluggish, the number of people opting for loans of lower ticket sizes was on the rise. In the Home Loan segment, the contribution of Home Loans under Rs. 30 lakh has increased to 72% of the total number of applications. This spurt can be attributed to first-time home buyers. In addition, while there has been a significant dip in the highest Car Loan ticket size, the average Car Loan ticket size remains steady.
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When it comes to credit products, the divide between metros and non-metros is noted to be dwindling. In case of Personal Loans, the average loan ticket size was Rs. 2.61 lakh in metros and Rs. 2.84 lakh for non-metros. Similarly, for Car Loans, the average car loan ticket size in metros was Rs 5.7 lakh. On the other hand, in non-metros the average car loan ticket size was Rs. 5.5 lakh.
When it comes to Credit Cards, Indians are increasingly becoming “Credit Card pros” with an eye on maximising the benefits and enjoying exclusive lifestyle privileges. Consumers are increasingly turning to the diverse benefits offered by premium Credit Cards, thereby showcasing a 30% growth across the board. Millennials between the age of 26 and 35 were the primary drivers, marking a 43.38% growth in applications in this segment.
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Another major inference from the BankBazaar Moneymood® 2020’ report was that women applicants continued to come out strongly in all categories, be it loans or Credit Cards. The gap between the average Personal Loan ticket size for women (Rs. 2.55 lakh) and men (Rs. 2.67 lakh) was low. In case of Home Loans, the average ticket size for women (Rs. 25.64 lakh) continued to be higher than men (Rs.23.72 lakh). The study revealed that women have emerged as the prime consumers for Credit Cards, and the number of women applicants for fuel, premium, and travel cards grew by 49.07%, 32.78%, and 21.99% respectively.
Adhil Shetty, CEO, BankBazaar said: “The biggest revelation of this year’s Moneymood® has been the average Indian’s penchant for getting the best deal. The slowdown in the market has made the average consumer cautious about how they invest in assets and lifestyle, and the financial products they use for these purposes. This makes the role of neutral marketplaces like BankBazaar even more critical in the coming days as we provide the widest platform to help customers take a well-informed purchase decision. We’ll be right there with them, doing our bit to ensure smooth access to the right financial product, paperlessly, with new-age solutions like Video KYC.”
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Speaking about the study, Aparna Mahesh, CMO, BankBazaar, said: “There has always been a need to understand the personal finance market in India better, and as the largest marketplace for personal finance products in India, we realised that there’s practically no one else who has such a clear view into what is happening in this space. Last year’s report carried several predictions basis our insights on how 2019 would pan out. Moneymood® 2020 shows that all those forecasts around housing & auto sectors and credit card usage have been proven beyond doubt.”
BankBazaar hosts the widest range of financial products from over 50 of the biggest public and private sector banks and NBFCs in India. It closed the last year with 322M visits. The company raised USD 110M through funding from investors such as Amazon.com, Experian, Fidelity Growth Partners, Mousse Partners, Sequoia Capital and Walden International.
If you have been on the lookout for a neutral online marketplace that fetches instant customised rate quotes on Personal Loans, Credit Cards or any other personal finance products, you’ve arrived at the right place. Take a tour of our website to search for tailor-made offers from our banking partners. You can also compare offers from different partners before opting for a product that suits your financial profile. What’s more? Well, BankBazaar’s services are completely free! What’s even better is that you can check your Credit Score for FREE in less than 3 minutes!