Car loans concentrated in urban high-income groups

The lowest annual income group of `75,000 and below hardly avails car loans

After nine instalments of the Indian Financial Scape survey, conducted by Delhi-based economics research firm Indicus Analytics, which tracks patterns of financial asset ownership in urban India, we now move on to gauge the debt usage of urban India. In the first instalment, we look at car loan usage. The data is split across income groups and regional variations. At least 35,000 households were surveyed across urban India during April-June 2012. Not surprisingly, as income level grows so does usage of car loans. In the lowest income category of 75,000 and below per annum, the usage is near negligible whereas in the highest income group of 1 crore and above it is around 42%. Looking at zone-wise data, it is again the western part of country which leads here in terms of percentage of households availing of car loans. However, the pan-India average for availing car loans is a low 9.30%.

Key takeaways:

1. Across India, the percentage of urban households availing car loans is 9.30%

2. The lowest annual income group of Rs75,000 and below hardly avails car loan facility.