A recent report by TransUnion CIBIL shed light on the growing number of credit seekers in the country. According to the data accessed, there could be a total of a whopping 10 million loan borrowers every year going forward. The report evaluates data between January 2019 and January 2021 of the total number of loan requests that were received by TransUnion CIBIL from ‘New to Credit’ or NTC customers. Read on to know more:

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Specifics of NTC customers based on Age groups

The table defines the percentage of new credit consumer enquiries as per the age group that they belonged to.

Age Category New to Credit Consumers
Under 25 years 24%
26-35 years 35%
36-45 years 20%
46-55 years 13%
Above 55 years 8%

First Time Borrowers – Why are Lenders Wary?

First-time borrowers, obviously, do not have any record or history with credit bureaus. This makes lenders wary when lending loans or credit to these individuals as they are not able to effectively access their repayment behaviour. Thus, essentially increasing the lending risk for financial institutions. Also check CIBIl score online.

Overcoming the Hurdle

As a way to overcome the lending risk, financial institutions have come up with a novel solution. They use the profile of new credit consumers and compare the same with other similar profiles. Bureaus such as TransUnion CIBIL have gone a step further to provide a CreditVision NTC Score service to borrowers who seek credit for the first time. A score is generated between the range of 101-200. When an individual has a higher value, it indicates a good NTC profile with a reduced probability of default.

Types of Loans Sought by NTC Customers

As per the record trend, these were the loan types that were widely applied for by NTC consumers:

Loan Type NTC Consumers
Auto Loan 24%
Consumer Durable Loan 28%
Credit Card 16%
Home Loan 25%
Personal Loan 18%
Two-wheeler Loan 46%

Why the Expected Spike in First Time Borrowers?

India is a nation that comprises a high number of millennials. A majority of the population of the country belongs to the age group of below 40 years. This group is also a very promising section of society that is most likely to take a first-time loan or credit card from different types of financial institutions. It is this understanding that explains the high expected spike in first-time borrowers in the coming months. The provisions have been made owing to the NTC bracket being a large market. As mentioned through the report, the borrowers could make for 100 million each year.

Indeed, loans are a great way to power your long-held dreams. Whether it is a home loan, business loan or a personal loan, the easy boost of funds can accelerate your plans. Check your application prospects on Finserv MARKETS today and avail of the most attractive loan plans.


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