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Business News/ Money / Personal Finance/  Financial Awareness Soars: Over 40% Indians regularly monitor their credit scores, reveals survey

Financial Awareness Soars: Over 40% Indians regularly monitor their credit scores, reveals survey

Moneyview survey underscores that over 40% of respondents perform monthly checks on their credit scores. Additionally, users are actively seeking loans to meet their aspirations and needs, demonstrating a general desire to stay informed about their creditworthiness.

A credit score, ranging between 300 and 900, is a snapshot of your creditworthiness.Premium
A credit score, ranging between 300 and 900, is a snapshot of your creditworthiness.

Moneyview has just revealed findings from its latest survey, offering insights into the changing dynamics of credit score awareness and financial preferences. The 2023 Consumer Credit Survey gathered responses from a diverse range of individuals, offering valuable perspectives on credit behaviours, loan aspirations, and the pivotal factors shaping financial decision-making.

Sharing thoughts on the survey, Prasanth Naidu, Chief Marketing Officer, Moneyview, said, “As we navigate through a rapidly evolving financial landscape, the insights from our recent survey underscore the importance of credit awareness and prudent financial planning. The findings highlight not only the increasing frequency of credit score monitoring but also the dynamic nature of individuals' financial goals. At Moneyview, we are committed to empowering our users with the tools and knowledge they need to make informed financial decisions in this digital age."

Findings from the 2023 Consumer Credit Survey Report by Moneyview include:

Monthly credit score monitoring: A notable 40 per cent of survey participants consistently monitor their credit scores each month, indicating a growing awareness of the significance of credit well-being.

Credit score enhancement: Half of the respondents (50 per cent) revealed that they have received recommendations from various platforms to improve their credit scores without incurring any costs, showcasing a proactive approach to credit management.

Loan ambitions: A substantial 71 per cent of those surveyed expressed intentions to secure loans ranging from Rs. 30,000 to Rs. 2,00,000, underscoring a sustained demand for financial support.

Lender selection criteria: Among the surveyed individuals, 26 per cent prioritize positive ratings when selecting a lender, while 29 per cent focus on minimal processing fees. Additionally, 48 per cent consider a low interest rate, 31 per cent seek higher loan amounts, 25 per cent value instant approvals, 21 per cent prioritize swift disbursements, and 16 per cent prefer a fully online application process.

The survey indicates that individuals have adopted the purposes for obtaining loans and the awareness channels through the following sources:

Loan purpose: Among those intending to secure a loan, 24 per cent plan to invest in business, 15 per cent require funds for medical emergencies, and an additional 15 per cent intend to use the loan for home renovation or construction.

Regular credit score monitoring: A significant 88 per cent of surveyed respondents affirmed their consistent practice of regularly checking their credit scores without fail.

Fraud vigilance: The report also highlights concerns about fraud or unauthorized loans taken in customers' names, underscoring the importance of frequent credit report checks.

Awareness sources: Communication channels such as WhatsApp/Text messages and emails from various platforms emerged as the primary sources of credit score awareness for 34 per cent of respondents. Google/Online Search accounted for 18 per cent, and recommendations from friends and family contributed to 12 per cent.

According to the survey findings, occupational and designation statistics indicate that among the 5000 survey participants, both salaried and self-employed contributors are included. In 2023, 61.52 per cent of loans were obtained by salaried individuals, while 38.48 per cent were secured by the self-employed. 

Furthermore, the distribution of loans across town classes is as follows: 19.98 per cent in Tier 1, 12.69 per cent in Tier 2, and a significant 66.93 per cent in Tier 3. Additionally, it is worth noting that in 2023, 13.98 per cent of females availed loans, in contrast to a higher percentage of 86.01 per cent among males.

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Published: 27 Dec 2023, 05:03 PM IST
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