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Credit Health Survey

CREDIT HEALTH
SURVEY – II
2016 EDITION

Credit Sudhaar

1. INTRODUCTION

1.1 ABOUT CREDIT SUDHAAR

Since 2013, Credit Sudhaar has become a leading platform that extends complete assistance and guidance related to management of credit and finance to individual

Credit Sudhaar focuses on providing solution based on the credit profile of individual so as not only are they able to have faster access to credit instruments but are also able to get the best interest rates and in turn save loads of money

The flagship product offered by Credit Sudhaar is to lend to customers with stressed credit history. Credit Sudhaar Finance extends loans to consumers who have low credit score and do not have access to funding from regular financial institutions

Having helped individuals from over 250 cities across the length and breadth of country, Credit Sudhaar has established itself as the premier financial assistance platform that uses technology and analytics inputs to help people achieve their financial goals

1.2 PURPOSE OF SURVEY

The survey has been undertaken to mark the 10th anniversary of The Credit Information Companies (Regulation) Act 2005 and gauge the overall understanding in individuals on credit bureaus, credit scores and their impact on one’s financial life

Four important factors form essence to this survey:

  • Patterns of understanding on Credit Scores and interpretation of Credit Report
  • Understand perception on impact of credit scores on various aspects
  • Evaluate awareness on exposure to cyber-crime, especially identity theft
  • Distinguish broad approach towards loan applications

5. METHODOLOGY

2. SURVEY METHODOLOGY

The survey is a compilation of six sets of questionnaires to understand and assess the understanding, impact and comprehension of credit in Indian populace

With over 1500 respondents from 8 major cities viz. Mumbai, Pune, Ahmedabad, Bengaluru, Chennai, Hyderabad, Delhi and Kolkata; the methodology has been robust and homogenous

There has been an average of 188 interviews per city. The interviews have been conducted in person to safeguard correctness of data getting collected

3. CREDIT HEALTH SURVEY

3.1 AWARENESS ON CREDIT BUREAU,CREDIT SCORE AND CREDIT REPORT

53% of population is still unaware about the credit bureau and credit scores. This is despite the awareness campaigns undertaken by financial institutions, bureaus and Credit Sudhaar over the last few years

While 47% of respondents were aware about credit bureaus, only 15% are aware about their own credit score
A larger population remains unaware of their credit scores

3.1 AWARENESS ON CREDIT BUREAU,CREDIT SCORE AND CREDIT REPORT

Only 11% of people have ever obtained their credit report from any credit bureau. This is a significantly low number given that there has been a significant increase in the population that qualifies for loans

Only 9% have reviewed their credit reports in last 12months.

3.1 AWARENESS ON CREDIT BUREAU, CREDIT SCORE AND CREDIT REPORT

While only 11% of people had obtained their report from any credit bureau,12% were able to identify various section sand information on credit report

3.2 AWARENESS ON IMPORTANCE OF CREDIT HEALTH

70 % of respondents are aware that the being credit healthy will facilitate easy access to credit

41% of people are aware that a good credit health helps in getting loans at lower rate of interest

3.2 AWARENESS ON IMPORTANCE OF CREDIT HEALTH

25% of population feels that a good credit score will help in job application with Delhi and Bengaluru leading the pack

It is encouraging to notice that 47% are aware of the fact that good credit health can help the min achieving their financial objectives

3.3 IDENTITY THEFT

Identity theft has become a global menace and is growing at a fast pace. Awareness on this is an important towards safeguarding one against the peril 35% of population in major metros has heard of identity theft

While 35% have heard about identity theft, a meager 4% have purchased any kind of protection Chennai and Bengaluru lead the pack in terms of safeguarding themselves from identity theft

3.4 CREDIT SCORE AND APPLICATION PROCESSES

44% of people want to check their credit report before applying for a loan or a credit card Hyderabad and Pune separate themselves from the pack with less than 10% intending to check their credit report

35% of population would apply for a loan or credit card through online channel. While 44% will apply directly through the bank, only 21% wish to engage an out sourced channel to have their application processed

4. ERUDITION

4.1 2016 VIS-À-VIS 2013 – A COMPARISON : KEY POINTS

Awareness of credit bureaus, credit report and score

Customers who had reviewed their credit reports in past 12 months

Understanding of various sections and information on credit report

Identity theft protection purchase

2013

2016

4.1 2016 VIS-À-VIS 2013 – A COMPARISON : A FEW OTHER POINTS

Hyderabad, Mumbai and Pune continue to stack at the bottom of survey on various aspects of survey

The awareness on importance of credit health has got established.

Helps in ease of getting loans

70%

Helps in getting lower interest rates

41%

Helps with job application

25%

Helps in achieving financial goals

47%

While 11% have ever obtained a credit report, a major proportion of 9% have reviewed in last 9%. What is significant is that 44% want to review their reports before applying for a loan.

This implies that there should be a significant increase in review of reports in coming 12 months

5. DISCLOSURE

ABOUT OUR SURVEY

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