Have credit, will buy, seems to be the motto of today’s shoppers. The Indian loan market is expected to grow at a compounded annual growth rate (CAGR) of nearly 19 per cent between 2011 and 2016.
Falling interest rates, faster processing, income tax rebates, lesser paperwork and easier repayment options have helped expand the Indian loan market.
Home loans account for the lion’s share of loans, at around 46 per cent. Consumers reach out to their friends and family (71 per cent) and banks (68 per cent) to come to a decision.
In fact, 31 per cent of consumers avail themselves of loans earlier than they planned because of promotional offerings. Comparatively, more than two out of five (44 per cent) consumers wait for better deals before availing a loan.
While most aspects of loans are closed beforehand, some are often left undecided in consumers’ minds.
This is where the influencer can step in to customise the loan to meet one or more product parameters.
Forty-five per cent of respondents changed the bank or NBFC they had originally planned to take a loan from. Thirty-five per cent changed the loan amount they had initially intended.
Banks continue to be the largest channel when it comes to handling consumer loans. It’s also interesting to note that the internet plays a significant role when it comes to vehicle loans.