The risk appetite of borrowers in Ahmedabad is higher than that of India, said Credit Information Bureau (India) Limited (Cibil) on Thursday releasing latest data trends report that throws light on city-wise borrower and lender behaviour.
?Despite the risk associated with credit cards and higher rate of interest on personal loans, these are the most common modes to avail credit for borrowers in Ahmedabad?, said Harshala Chandorkar, sr vice president, consumer relations, Cibil.
The report says that 52% of credit applicants in Gujarat are less than 35 years, higher than the national average of 49%. However, Maharashtra tops the new applicants for credit at 63%.
Credit card and personal loan penetration in Ahmedabad is higher than pan-India average with credit cards (34%) and personal loans (21%) being the most availed form of credit, higher than the national average of 18% and 17% for credit cards and personal loans respectively.
The Cibil data as of September 2013 say the number of applications for new credit has been on a steady rise and has increased 150% since first quarter of 2010, which indicates a bounce back by lending institutions in sanctioning new credit after the 2008 downturn. According to Cibil, over 80% of borrowers in Ahmedabad have a Cibil TransUnion Score, which is greater than 700, indicating that these borrowers have a higher chance of getting their credit card and loans approved by the lending institutions.