The second series of the Indian Financial Scape survey, conducted by Delhi-based economics research firm Indicus Analytics, tracks patterns of debt usage of the urban India. In its third instalment, we look at two-wheeler loan usage. The data is split across income groups and regional variations. At least 35,000 households were surveyed across urban India over the period April-June 2012. The overall penetration across urban India is at a low 1.16%. However, around 30% two-wheelers are financed across India, which gives the impression that it is mostly the rural parts of the country which avail this facility. Not surprisingly again, among the urban regions the western region is ahead of the pack with 1.97% households availing the loan facility. It is followed by the northern region at 0.79% and southern and eastern regions at 0.63% and 0.62%, respectively. In the highest income category of Rs.1 crore and above, only households in the western region avail the facility. Also, in percentage terms, at 7.31% level it is highest across regions and income categories.
1. The overall penetration of two-wheeler loan is higher in rural areas compared with urban areas.
2. In the highest income category of Rs1 crore and above, only households in the western region avail the facility.