CREDIT SUDHAAR, India’s premier Credit Health Improvement Company released the results of its first ever survey on Credit Health in India. The survey was conducted across 8 cities in India and sampled over 300 respondents.
Credit awareness in India has a long way to go, with more than 85% of the respondents not being aware of what Credit Bureau’s are. Delhi and Pune led the country with 1 out of 4 respondent being aware of Credit Bureaus. In fact, a whopping 92% of respondents are unaware of their credit scores. Delhi, Bangalore and Pune had more than 10% respondents knowing their score.
“The primary objective of conducting the survey was to understand the cause and effect analysis of clients who have been through credit impairments. In other words, we wanted to understand the reasons for the unavailability of credit to clients due to negative credit history and a low credit score. The survey revealed that 91% of the customers were not aware of the impact of non-payment of credit dues. We feel that a lot of this could have been avoided if they would have been aware of their credit health and the impact of non-payment of credit dues. We also realized during the survey that penetration of professional credit counseling is almost nonexistent in India, which leaves space for presence of credit advisory services,” said, Mr. Arun Ramamurthy and Mr. Gaurav Wadhwani, Co-founders, CREDIT SUDHAAR.
While a mere 4% had reviewed their Credit score in last 1 year, 98% of the respondents who took the survey were unable to comprehend the report that was shared with them. The survey revealed protection of credit as a major concern as none of the respondent had taken any steps to protect their identity from theft.
Even as WILL is an important tool when it comes to securing inheritance and ensuring a dispute free transfer of assets. Only 1% of the respondents have made a will and further more had no idea or will to make or understanding of a WILL. On tax optimization front, only 17% of the customers have taken help from an expert.
As a part of the survey, CREDIT SUDHAAR analyzed 2116 Credit Bureau Reports and accordingly analyzed the details reported in the Bureau reports with the individuals. Based on the analysis errors were identified in 557 reports of unique individuals.
Another part of the survey was aimed to understand the penetration of major credit bureaus in Indian market, specifically with major financial institutions. It was evident that CIBIL is the bureau most of the institutions upload their data to whereas Equifax is a close second. In terms of Microfinance lending, the market is dominated by Highmark and Equifax.
“We undertook this survey to understand and analyze certain parameters related to overall understanding of credit profile of an individual at a retail level and its inroads in Indian Market and context. Consumer Survey on Patterns and behavior of individual credit profiling in India, Credit Impairment, Impact of Errors in Credit Bureau reports and Credit Bureaus and their penetration in Financial Institutions in India were the four major aspects in which we have studied this survey. The results suggests a wide gap between where clients need to be and where they are in terms of their awareness and overall understanding of Credit.,” added, Mr. Arun Ramamurthy and Mr. Gaurav Wadhwani.
Key findings of the Survey: *
· 92 % of respondents are unaware of their credit scores
· 86% of respondents have not heard about any credit bureau
· Only 4 % of the people have checked their credit scores in the last 1 year
· 98% of people could not decipher a sample credit report when they were shown one
· 91 % of the people who default on credit are unaware of any of the negative consequences of their actions
· Only 1% of the respondents have made a Will
· None of the respondents had ANY kind of identity protection
· Overall, credit awareness and credit protection are extremely low
· CIBIL, on account if its vintage value, is the pre-eminent bureau but Equifax is catching up fast
· 1 in 4 CIBIL credit reports have errors
· 1 in 5 CIBIL credit reports have “MAJOR” errors in them
Credit Sudhaar was founded with a vision to Restore, Enhance and protect a person's credit through various stages of the credit life cycle.
ABOUT CREDIT SUDHAAR
Headquartered in Mumbai, CREDIT SUDHAAR is India’s foremost Credit Health Improvement Company. The company’s goal is to help individuals become credit healthy. CREDIT SUDHAAR is run by trained professionals and certified counselors whose expertise lies in using a combination of analytical tools, a state of the art product suite and multi stage guidance to handhold you through the various stages of a credit life cycle and make you a Credit Healthy individual.
Credit awareness in India has a long way to go, with more than 85% of the respondents not being aware of what Credit Bureau’s are. Delhi and Pune led the country with 1 out of 4 respondent being aware of Credit Bureaus. In fact, a whopping 92% of respondents are unaware of their credit scores. Delhi, Bangalore and Pune had more than 10% respondents knowing their score.
“The primary objective of conducting the survey was to understand the cause and effect analysis of clients who have been through credit impairments. In other words, we wanted to understand the reasons for the unavailability of credit to clients due to negative credit history and a low credit score. The survey revealed that 91% of the customers were not aware of the impact of non-payment of credit dues. We feel that a lot of this could have been avoided if they would have been aware of their credit health and the impact of non-payment of credit dues. We also realized during the survey that penetration of professional credit counseling is almost nonexistent in India, which leaves space for presence of credit advisory services,” said, Mr. Arun Ramamurthy and Mr. Gaurav Wadhwani, Co-founders, CREDIT SUDHAAR.
While a mere 4% had reviewed their Credit score in last 1 year, 98% of the respondents who took the survey were unable to comprehend the report that was shared with them. The survey revealed protection of credit as a major concern as none of the respondent had taken any steps to protect their identity from theft.
Even as WILL is an important tool when it comes to securing inheritance and ensuring a dispute free transfer of assets. Only 1% of the respondents have made a will and further more had no idea or will to make or understanding of a WILL. On tax optimization front, only 17% of the customers have taken help from an expert.
As a part of the survey, CREDIT SUDHAAR analyzed 2116 Credit Bureau Reports and accordingly analyzed the details reported in the Bureau reports with the individuals. Based on the analysis errors were identified in 557 reports of unique individuals.
Another part of the survey was aimed to understand the penetration of major credit bureaus in Indian market, specifically with major financial institutions. It was evident that CIBIL is the bureau most of the institutions upload their data to whereas Equifax is a close second. In terms of Microfinance lending, the market is dominated by Highmark and Equifax.
“We undertook this survey to understand and analyze certain parameters related to overall understanding of credit profile of an individual at a retail level and its inroads in Indian Market and context. Consumer Survey on Patterns and behavior of individual credit profiling in India, Credit Impairment, Impact of Errors in Credit Bureau reports and Credit Bureaus and their penetration in Financial Institutions in India were the four major aspects in which we have studied this survey. The results suggests a wide gap between where clients need to be and where they are in terms of their awareness and overall understanding of Credit.,” added, Mr. Arun Ramamurthy and Mr. Gaurav Wadhwani.
Key findings of the Survey: *
· 92 % of respondents are unaware of their credit scores
· 86% of respondents have not heard about any credit bureau
· Only 4 % of the people have checked their credit scores in the last 1 year
· 98% of people could not decipher a sample credit report when they were shown one
· 91 % of the people who default on credit are unaware of any of the negative consequences of their actions
· Only 1% of the respondents have made a Will
· None of the respondents had ANY kind of identity protection
· Overall, credit awareness and credit protection are extremely low
· CIBIL, on account if its vintage value, is the pre-eminent bureau but Equifax is catching up fast
· 1 in 4 CIBIL credit reports have errors
· 1 in 5 CIBIL credit reports have “MAJOR” errors in them
Credit Sudhaar was founded with a vision to Restore, Enhance and protect a person's credit through various stages of the credit life cycle.
ABOUT CREDIT SUDHAAR
Headquartered in Mumbai, CREDIT SUDHAAR is India’s foremost Credit Health Improvement Company. The company’s goal is to help individuals become credit healthy. CREDIT SUDHAAR is run by trained professionals and certified counselors whose expertise lies in using a combination of analytical tools, a state of the art product suite and multi stage guidance to handhold you through the various stages of a credit life cycle and make you a Credit Healthy individual.
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