EMI cards remain the preferred transaction method for over 50% Indians: Survey
1 min read 21 Dec 2022, 06:47 PM ISTThe study, How India Borrows 2022, was conducted across 16 cities including Mumbai, Bengaluru, Delhi, Kolkata, Chennai, Lucknow, Patna, and Ranchi
PremiumIna recent survey conducted by Home Credit India, it has been revealed that more than 50% of people in India prefer using an EMI card or any credit card for shopping over paying right away. EMI is equated monthly installment. The transaction method relates to payments made regularly to repay an outstanding loan within a certain time frame
The study, How India Borrows 2022, was conducted across 16 cities including Mumbai, Bengaluru, Delhi, Kolkata, Chennai, Lucknow, Patna, and Ranchi. The study included 1,500 borrowers between 18 and 55 years of age having an average income of 30,000 per month.
The survey revealed that out of 1500 people, over 50% preferred EMI cards for shopping or other credit purposes.
The survey concentrated on the ‘rapidly evolving consumer borrowing behaviour’ and saw that 75% borrowers took credit to buy consumer products, home appliances, home renovation and business purposes.
The credit cards were used by 25 per cent borrowers while the ‘Buy Now, Pay Later’ credit platform just got 10 per cent takers.
According to the Home Credit India survey, the borrowers found EMI cards trustworthy, with timely approvals and quick disbursals. On the other hand, 60 per cent of the borrowers, mainly millennials or Gen Z from the tier 1 and tier 2 cities showed interest in ‘embedded finance’ which involves e-commerce shopping to be converted into EMIs for affordable financing.
The borrowers spanned across cities like Bengaluru (82%), Patna (74%), Lucknow (69%), Ludhiana (68%) and Jaipur (68%), the company said in a statement.
The survey stated that 50 per cent of the borrowers from cities like Jaipur, Pune, Ludhiana, Lucknow and Chandigarh expressed willingness for a loan application through WhatsApp chat. Chatbots and mobile banking were also the preferred modes for filing loan application.
According to the survey, 40 per cent of the borrowers said they wanted to be financially educated in fields like personal finance from renowned organisations.
