• Delhi – NCR leads list of most credit aware customers, followed by Mumbai, Bengaluru, Hyderabad and Pune

• More than 40% customers with credit score of over 750 are under the age of 30

Paisabazaar.com, India’s largest marketplace for financial products, announced today that its credit awareness initiative has helped around 8.3 lakh customers improve their credit score by over 100 points within six months.

Paisabazaar.com, which is the clear market leader for lending products, has been providing consumers their free credit report with monthly updates since January 2017. It aims to ensure its customers are well-aware of their credit score and take adequate steps to build it over time, which would make them eligible for the best lending products available at lower cost. 

“There are around 250 million people on the credit bureau in India, out of which only 40-45 million are prime customers with a strong credit score of 750 and above. Most banks and financial institutions prefer this segment to distribute their lending products. To increase the penetration of formal credit, Paisabazaar.com for the last 2+ years has been helping customers become aware of their credit score and offering advice on building it over time,” said Naveen Kukreja, CEO & Co-founder, Paisabazaar.com.

“Broadly, there are 3 key aspects to credit score – checking it, tracking it and building it. Paisabazaar.com has enabled free and instant check of one’s credit score from multiple credit bureaus, tracking of the score can be done seamlessly through WhatsApp, Google Assistant and Amazon Alexa, and we also offer personalized services to build the score. Our objective is to help each customer achieve a high credit score and lead a healthy financial life,” said Radhika Binani, Chief Product Officer, Paisabazaar.com.

62% of customers have a strong credit profile

62% of customers who have taken their credit report from the Paisabazaar platform have a credit score (from CIBIL) of over 700, which is considered ‘good’ by most banks and financial institutions. On the other hand, 11% customers have a score less than 600, which is considered a ‘risky’ profile for any of lending product.

(Source CIBIL*)
 

Paisabazaar.com offers unique services for each segment with varying credit profiles to help them maintain or build a strong credit profile. Consumers with strong credit profile can benefit from the Paisabazaar platform through first in the industry innovations like Chance of Approval that helps them choose the most-suited and customized lending products, enabling them to save money due to their high scores.

For those with average scores, through builder products, can increase their credit score significantly. Consumers with low scores are offered advisory service by Paisabazaar, where credit experts provide tailor-made plans, offer personalized advice and also assist them in resolving errors in their credit report, to build their credit score over time.

Young India responsible with credit

Paisabazaar.com’s data also shows that two-third of the customers who have a strong credit profile are under the age of 35.  40% of consumers who have a credit score of over 750 are under the age of 30, while 26% are between 31-35 years.

More than 40% customers with high credit score are under 30 years

“Our data and the conversations we have with our customers clearly indicate that that millennials are extremely aware and responsible with credit. Due to high aspirations and easier access, they have started to take credit products early for international trips, higher education etc., and are usually very good in repaying it,” said Naveen Kukreja.

Almost half of the credit aware population are from Top 10 Cities

54% of Paisabazaar.com’s consumers who have a credit score of over 750 come from Top 10 metro cities. Delhi-NCR has the highest number of credit aware customers, with Delhi alone contributing 11%, while Gurgaon has 2% and Noida, Faridabad and Ghaziabad constitute 1% of the credit aware population. Mumbai, Bengaluru, Hyderabad and Pune are in the top 5 cities, that has 42% of Paisabazaar customers who have a strong credit score.

“While the metro cities are still dominating when it comes to credit awareness, we see a steady change happening where people from smaller cities and towns are also becoming more confident in accessing credit, especially digitally. In the next couple of years, we expect huge increase in credit awareness from Tier 2 and 3 cities,” said Naveen Kukreja.

Focus on further innovation

Paisabazaar.com is the only financial player in India that partners with major credit bureaus in the country to provide credit reports for free for life. It has also introduced several industry-first innovations to make tracking and building of credit score easy, including a credit advisory service that provides personal expert help to customers with low scores.

Paisabazaar.com says its round-the-year brand campaigns on TV and digital around this credit awareness initiative has made it almost synonymous with the ‘free credit score’ product, and it will continue to build on it through technology and data.

“While we have come a long way in the last 2 years helping consumers become more credit aware, given the size of the Indian market and the huge unserved credit segment, we, as an industry, still have a lot to do. Paisabazaar.com intends to continue to provide a completely safe, secure and best in the industry consumer experience on its platform,” said Naveen Kukreja.

About Paisabazaar.com

Paisabazaar.com is India's largest online marketplace for loans and Credit Cards. It works with more than 75 partners across lending and investment categories to offer 300+ products to meet all lending and investment needs of consumers. Paisabazaar is the only marketplace in India to disburse annualized loans worth USD 1 billion.

The platform has been conferred with Economic Times “Best Fintech Brand” (2018) Economic Times “Best BFSI Brand" (2016), Money Tech “Startup of the Year” (2017) and Money Tech “Best Customer Experience Innovation” (2017) awards. PaisaBazaar.com is part of ETechAces that owns India’s leading insurtech brand, PolicyBazaar.com, and newly launched health tech platform, docprime.com. The company is backed up by a host of investors including the likes of Softbank, Temasek, Tiger Global Management, True North, InfoEdge (Naukri.com), Premji Invest, besides investments from other PE funds and family offices.