Credit card spending: Borrowing by GenNext on the Rise

KOLKATA: India’s new generation is getting indebted by the day as consumerism is gaining momentum with a rise in credit card spending.

A study by the Credit Information Bureau (India) shows that 53% of bank loan applicants till Nov last year were less than 35 years of age, while 70% of new credit card seekers were also in same age group. Cibil says that about 40% of home and auto loan seekers are young.

Bangalore has the youngest population applying for bank credit with over 70% below the age of 35, while it is the other way round in Kolkata. The eastern state capital has 51% of its borrowers above 35 years of age.

Cibil said demand for unsecured loans has shown a rise in the December 2012 quarter even though the overall economic growth for 2012-13 is projected to be lower at 5%. Overall, the rise in credit offtake has largely been driven by secured products like housing or auto loans.

Credit card is the second-most enquired product. After hitting a low during the global financial crisis of 2008, credit demand has been on the rise of late.