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Updated: February 28, 2014 11:31 IST

‘Low penetration of credit cards in Kerala’

Special Correspondent
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A jewellery shop in Kochi displays the credit cards accepted by it. File photo: K. K. Mustafah
The Hindu
A jewellery shop in Kochi displays the credit cards accepted by it. File photo: K. K. Mustafah

A study conducted by Credit Information Bureau (India) Limited (CIBIL) shows that Kerala has a very high penetration of auto (35 per cent) and two wheeler (32 per cent) loans. However, very low penetration of credit cards and personal loans shows untapped potential in the State.

CIBIL is a credit information company that maintains information on over 317 million consumer trades and 15 million commercial trades in the country. Credit institutions access CIBIL Credit Information Reports and CIBIL TransUnion Score to review the risk associated with new applicants as well as their existing customers, a press release said. 

Arun Hukral, CIBIL’s Managing Director, addressing a meeting here on Tuesday, said Kerala has 46 per cent credit seekers who are less than 35 years of age. When compared to other top States Kerala has the highest number of credit applicants who are above 45 years of age. 

 CIBIL has released latest data trends report that throws light on both borrower and lender behaviour. The study reveals that borrowers with a credit score of 700 and above have a higher chance of getting their loan and credit card applications approved by banks. This indicates that the CIBIL Report and the CIBIL TransUnion Score have become integral risk assessment tools for banks and financial institutions for sanctioning any new credit. 

Since the growth of the credit information industry, the CIBIL TransUnion Score has been widely used by banks and financial Institutions in India for credit decisions. This score assigned to a borrower ranges from 300 to 900. The higher an applicant’s credits score the more the chances of the loan application getting approved.

More In: Kerala | National

Very low penetration of credit cards in Kerala is because Keralites know the games played by the credit card companies.

from:  george
Posted on: Feb 28, 2014 at 12:24 IST
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