Watch Your Wallet

Maintaining a positive credit profi le is a must for loan-hungry millennials

- Hrushikesh Mehta

The booming retail credit market in the country is propelled by the increasing demand for credit cards and consumer loans. This increase in credit penetration is directly proportional to the rising demand for goods and services by an age group that constitutes two-thirds of India's population—the millennials. If you fall into the 20 to 35 years age group, you are a millennial. You may be straight out of college and joining the workforce, or you may already have about 12-13 years of work experience.

In a recent TransUnion CIBIL market survey, millennials emerged as the fastest growing segment, poised to change the credit landscape with an affinity for credit, financial goals and aspirations. This group’s credit appetite is fuelled by their aspirations to upgrade their lifestyles, purchase vehicles and provide for their families in case of an emergency. If you are a new-to-credit or loan-aspiring millennial, let us take a look at how you can create a positive credit profile.

CIBIL data indicates that 39 per cent of loans have been sanctioned to the millennial age group. Within this segment, 38 per cent of loans sanctioned were towards credit cards, followed by two-wheeler loans (17 per cent) and consumer loans (16 per cent).