The demand for loans for various products including home and auto loans from banks and other financial institutions in India has shown a sharp increase of 150 per cent since 2010, according credit information agency CIBIL.
The spurt in loan-seeking showed an increased demand for credit and a bounce back by lending institutions in disbursals after the 2008 downturn, according to Harshala Chandorkar, Senior Vice President, Credit Information Bureau India Ltd (CIBIL).
CIBIL has 930 credit institutions as its members and maintained information on over 290 million consumer and 14 million commercial trades, Chandorkar told a press meet here today.
In Kerala’s case, auto loans (35 per cent) and two-wheelers (32 per cent) were the most availed form of credit compared to the national average, she said.
However, the state had a very low penetration of credit cards and personal loans, which showed that this segment remained largely untapped, she said.
Holding that CIBIL TransUnion score had been widely used by banks and financial institutions in the country for credit decision, she said the score assigned to a borrower ranged from 300 to 900. The higher an applicant’s credit score, greater the chances of the loan application getting cleared.
In Kerala, 21 per cent of borrowers had a credit score of 800 and above and 40 per cent had 750 and above.
The usage of score by banks and credit institutions resulted in reduction in delinquencies over the past three years, especially in the case of home, auto and personal loans, Chandorkar added.