Looking to understand the new to credit market better to ideate a solution for them. Any research that can help? Also very keen to chat if anyone is thinking about solving for this market too!
Thoughts to consider:
For New to Credit: What is their age? If they are above 35/40, what can be the reason they haven't needed to take any loans before? Are they being used as a proxy? Eg: husband applying on wife's PAN or Son's applying on parents' PAN...
If they are younger, what product are they applying for and what purpose? Credit cards, Education loans are straightforward. Personal loans for moving to a new city for jobs is also understandable. Else personal loan as the first credit product is kinda red flag.
Other take to consider: Credit experience matters. If someone is NTC, doesn't necessarily mean he is credit averse. Can mean that he might be over leveraged from informal sources or hiding his needs from his immediate society. Formal loans from digital apps are impersonal, avoids the shame letting everyone know your credit needs and softens the pain of application rejection.
Speaking from my very limited exposure being in my Bangalore bubble. Story might be completely different elsewhere.
Hey thanks, this is quite helpful.
Read a report recently which points out that Millenials hold the highest share among NTC, followed by GenZ with high contribution from rural areas.
Kinda makes sense, disbursements to both these sets have been going down.
The only viable option that is fairly easy to get is secured card (loans are at formidable rates) but something about secured card just strike as a brilliant solution to me. It works when someone wants to consciously build a credit score or improve it. This ignores a major set that actually needs credit.
Living in Bangalore bubble myself, trying to understand problems we may be oblivious to
Hey sounds really interesting, can you please share the report?
Message me on telegram @Realbroky I may be able to provide you some insights soon.
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