Priyanka Parashar/Mint
Priyanka Parashar/Mint

Consumer durables loans not for urban India

Though consumer durables are used by most urban households, most are purchased with lump sum.

The second series of the Indian Financial Scape survey, conducted by Delhi-based economics research firm Indicus Analytics, tracks patterns of debt usage of urban India. In its fifth week, we look at consumer durables loans and the pan-India average stands at a meagre 0.21%. Though various consumer durables are used by most of the urban households, it seems most are purchased with a lump sum. 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. In this case, all the regions show a similar pattern of usage. Region-wise, the northern and western regions jointly lead with 0.24% penetration, followed by eastern and southern regions with 0.17% and 0.16%, respectively. However, it can be noticed that as income rises, the usage increases too. In fact, the highest usage was found in the category of 1 crore and above across all regions.

Key takeaways:

1. The pan-India average is a meagre 0.21%.

2. The category of 1 crore and above uses the facility the most.