The face of consumer lending is changing in India: Devang Shah

The Indian consumer credit market has witnessed tremendous jump  in  past few years thanks to the strong growth in the major unsecured lending categories of credit cards, personal loans and consumer durable loans.

Devang Shah

Today people want to have instant gratification because of which they are opting for more and more digital banking services. This in turn is changing the face of consumer lending in India, says Devang Shah, General Manager – Credit Services & Analytics, Experian.

The banks have embraced the digital-lending revolution, bringing time to cash to less than 24 hours and ‘time to yes’ down to five minutes.

With the increased mobile penetration, people now have more access to information and they are doing thorough research before investing in any of the product or projects. So, when they are approaching the market they know the price, quality and specification of the product in which they want to invest. It is called as digital window shopping, which is booming as people want to have instant gratification, Shah said.

According to a global survey, the young generation is more comfortable in sharing their confidential data as compared to the generations before. Eventually, leading to change in our ways of working, he said.

As per the recent Crisil Research report, unsecured lending, mostly comprising credit card loans, education loans, SME credit and personal loans, among others saw a compound annual growth rate (CAGR) of 27 percent between FY15 and FY18.

In India, around 17 million people enter into the work force every year. At present there are only 30 million people in India who avail the credit card services. The increase in the number of people joining workforce will eventually lead to the rise in number of credit card users, as these are the people are going to buy home loans, credit cards, auto loans. Leading to the growth in consumer lending.

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