New Delhi:
Credit card usage in India has increased by 34 percent in the September quarter, whereas this figure was at 26 percent in the same period of 2023. This is because customers are spending more on their existing credit cards to meet their consumption needs. This information was given in a report released on Monday.

The TransUnion CIBIL Credit Market Indicator (CMI) report said that India’s retail credit growth has seen a slight slowdown in the quarter ending September 2024. This is due to a general decline in the rate of loan demand growth and a reduction in the supply of credit in most loan products.

Bhavesh Jain, CEO and MD, TransUnion CIBIL, said, “The strong growth in spending on credit cards reflects its growing acceptance among consumers. This is not just limited to transactions, but also reflects easier access to credit.”

Jain further said that this could be an opportunity for lenders to identify consumers who need additional loans for their consumption and provide them better and affordable solutions.

According to the report, double digit growth was recorded in personal loans on an annual basis, which was 11 percent in September 2024. This growth rate is much less than the figure of 32 percent for the same period last year.

The report said that a strong growth has also been seen in loans against two-wheelers and property. Jain suggested, “Changing market conditions mean that lenders need to adopt a targeted approach to retail loan growth. Portfolio monitoring by new analytical techniques will enable lenders to prudently extend loans to eligible consumers across India. which will serve as a vehicle for economic activity and growth.”