Credit Bureaus Aid Unsecured Lending to High Credit Score Consumers

Unsecured Loans Growth IndiaThe transformation of the Indian financial sector began with consumer credit profiling by credit information company such as CIBIL and later permitting Equifax and Experian to compete in the world’s largest democracy. In the last 5 years, Credit bureaus have been a game changer for the personal / business loan and credit card segments.

Unsecured products (personal /business loans, credit cards ) are seeing continued momentum in growth. However, this difference between current and previous

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Total Debit and Credit Card Issued in India Reaches 520 Mn in 2014

In continuing our tradition to source authentic data and present it to you, we have published the breakup of Debit Card and Credit Cards in circulation in India at the end of Dec 2014. It gives me immense pleasure to state that Total Debit & Credit Card Penetration in India has touched a whopping 520 Million / 52 Crore [1 Crore = 10 Mn] at the end of 2014, half the size of Indian population, still less than the 97 crore mobile connections India has.

The Following Chart Shows the

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What is the Co-Relation Between CIBIL Credit Score & Loan Sanction ?

CIBIL CardBhai Interaction on Loan Approval & Credit ScoreThe demand for loans in India for various products, including home and auto loans from banks and other financial institutions in India, has grown a sharp 150% since 2010, according to CIBIL. As India’s largest credit information company, CIBIL has 930 credit institutions as its members and maintains information on over 290 million consumer trades and 14 million commercial trades

What are the hit rates on CIBIL? Have they gone up?

Credit / Debit Card Acceptance on Rise as Indian Banks Push POS Terminals

Credit card POS Terminals Rise in IndiaIndians are increasingly spending Plastic Money – using Credit / Debit cards as RBIs favorable regulations has helped develop the Eco-system for Banks & Consumers as well. For Banks, Credit Cards has become a profitable portfolio and thus the race began with private banks beginning to be the end points for sale [POS] transaction which helps them keep the 1.65% Merchant Discount Rate they charge to the business establishment.

HDFC Bank began the race for establishing POS terminals and it has reached a whopping 245,842. ICICI Bank has also made a strong

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Private Banks Ride Retail Credit Lending Boom backed by CIBIL,Experian & Equifax

CIBIL Credit Bureau Conference IndiaIndian private sector banks are focused on retail lending, largely on account of process-driven lower turnaround time for lending decisions in the retail segment. Bureaus such as CIBIL, Experian and Equifax have played a key role in meaningfully reducing the probability of adverse selection by lenders, facilitating more sensible targeting and deeper mining of existing customer relationships. However, in the current cycle, the thrust is equally split between secured and unsecured (50:50) in contrast to 2007 where the mix was skewed towards unsecured (nearly 70%-80% of the proposals during 2007 were unsecured in nature).

Indian Credit Bureaus, CIBIL, Experian and Equifax also believes that banks are more comfortable in disbursing top-up loans on an existing loan product resulting in rising leverage,

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Which Banks in India Lead the Credit Card Portfolio ?

icici hdfc credit cardsIn our previous article we presented that Credit Cards is the Next Big Product for Banks contributing to Banks Bottom-line in the Wealth Management Segment. Today we’d like to analyze on the basis of Data which Banks are Leading the Credit Cards Business Segment in India.

HDFC Bank, SBI and ICICI Bank seem set to lead this business. The share from this business is likely to be most significant to HDFC Bank (over 15% of fee income) given its high market share in credit card transactions or volumes. For most other banks, the share of this business is relatively lower at less than 10% of

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