100 Million First Time Borrowers to apply for loan every year: CIBIL

by Marie Rodriguez

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


100 Million First Time Borrowers to apply for loan every year: CIBIL 3

Specifics of NTC customers based on Age groups

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

Age CategoryNew to Credit Consumers
Under 25 years24%
26-35 years35%
36-45 years20%
46-55 years13%
Above 55 years8%

First-Time Borrowers – Why are Lenders Wary?

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

Overcoming the Hurdle

Financial institutions have devised a novel solution to overcome the lending risk. They use the profile of new credit consumers and compare the same with similar shapes. Bureaus such as TransUnion CIBIL have provided a CreditVision NTC Score service to borrowers seeking 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 TypeNTC Consumers
Auto Loan24%
Consumer Durable Loan28%
Credit Card16%
Home Loan25%
Personal Loan18%
Two-wheeler Loan46%

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 below 40 years. This group is also an up-and-coming section of society that will most likely take a first-time loan or credit card from different financial institutions. This understanding 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 in the report, the borrowers could produce 100 million each year.

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

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