Positive demographics are boosting disposable income of Indian households as an increasing number of the younger population joins the workforce. By 2030, India is expected to have the largest working-age population in the world of about 962 million. Rising disposable income along with improved access to credit, in turn, is driving private consumption—the main pillar of our economy. This has propelled the growth of unsecured loans to exceed that of secured loans. Between September 2017 and September 2018, the portfolio for unsecured loans was up 35% as against 21% for secured loans. with the continuous focus by successive governments on financial inclusion and digitization, the unsecured loan segment is expected to grow further. With new start-ups and e-commerce brands offering credit on one’s finger tips and within a matter of seconds, credit bureaus have a greater role to play to ensure credit is offered to the right customer for the right amount.

(Live Mint)