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Home Credit India Study Shows Growing Financial Confidence; Majority Save and Invest

Hyderabad/New Delhi, 23 May 2024: Home Credit India (HCIN), a local arm of the leading global consumer finance provider, released the second edition of its in-house annual consumer survey – The Great Indian Wallet Study: Consumer behaviour towards key financial aspects.

Infographic_The Great India Wallet Study'2024

The Great Indian Wallet study was conducted across 17 cities including Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune, Lucknow, Jaipur, Bhopal, Patna, Ranchi, Chandigarh, Dehradun, Ludhiana and Kochi. The sample size was approx. 2500 in the age group of 18-55 years, with an annual income between Rs. 2 lakhs to Rs 5 lakhs.

Speaking on the findings, Ashish Tiwari, Chief Marketing Officer, Home Credit India, said: “The Great Indian Wallet study serves as our compass, guiding us through the intricate landscape of consumer financial behaviour each year. By delving into the underlying behavioural trends, we gain valuable insights into household financial stability and the potential risks associated with technology in financial transactions. This year’s study reflects an upswing in the overall Financial Well-Being among urban and semi-urban consumers due to the strong economic growth, providing a clear insight into consumer sentiments, spending patterns, and saving habits among various demographics and segments.”

As per The Great Indian Wallet study, the Financial Well-Being Index among urban and semi-urban consumers has increased over last year, both in terms of current status and future perception. 52% of the consumers said that their income increased in the current year over last year, while 74% of consumers expects their income to increase by the coming year. About two-thirds claim that they would be able to save more (66%) and invest more (66%) in the coming year. This buoyancy in consumer sentiment is fuelled by the upward growth trajectory in the economy, an increase in earning capacity, and a positive perception of income growth.

Region wise, in 2024, Hyderabad sees a rise in the average personal monthly income to 44k from 42k in 2023, with 68% of respondents reporting increased savings. However, fixed monthly expenses also escalated to 24k from 19k in 2023. Hyderabad retains its status as the best city for urban lower-middle-class living in India for the second consecutive year. Grocery and rent remain primary monthly expenses, comprising 21% each, followed by children’s education at 17%. Discretionary spending trends reveal a preference for local travel and sightseeing (35%) and dining out (28%). Over the last six months, 57% indulged in purchasing clothing and accessories. Hyderabad’s significant contribution to household expenses (79%) underscores its financial significance among metros, surpassing even Mumbai’s (75%). 41% expressed awareness of online financial frauds, with 27% falling victim to such online scams. Interest in financial services like ‘Credit on UPI’ remains at 16%, though 87% assert they would discontinue using UPI if it incurs charges.

Meanwhile, on national level, the study further shows that the average of Personal Monthly Income in 2024 stands at 35k for Metros and 32k for Tier 1 & 2 cities, showing an increase from 33k (Metros), 30k (Tier 1), and 27k (Tier 2) in 2023. Among Metros and Tier 1 cities, Bangalore, Hyderabad, and Pune emerged as pivotal hubs, offering newer and better prospects for consumers seeking advancement. These cities witness rise in income levels, with Bangalore and Hyderabad leading with incomes 15% and 33% higher than the national average, respectively.

The study also provides an overview of the income and expenses among lower-middle-class individuals in 2024. On average, the personal monthly income of lower-middle-class individuals is around 33K, while monthly expenses stand at 19K in 2024. The growth in income over the past year has kept pace with the increase in expenses.

In terms of Wallet Share, the study revealed that Grocery (26%) and Rent (21%) continues to be the primary expenses dominating the wallet share of the average lower-middle-class Indian. This is followed by Commute (19%), Children’s Education (15%), Medical Expenses (7%), Electricity Bills (6%), Cooking Gas (4%), and Mobile Bills (2%).

As for Discretionary Spends, distinct spending patterns among different demographics could be seen. Chennai leads in local travel/sightseeing (59%), eating outside (54%) and watching movies outside (55%) when compared to other metros. Lucknow, on the other hand, is the lowest spender on local travel/sightseeing (17%) and eating outside (14%). Chennai also pays the highest rent (29%), while Kolkata and Jaipur pay the lowest (15%). Ahmedabad and Dehradun spend the least on fitness (1%). Bengaluru & Kochi spends the most on children’s education (23%). Dehradun tops in medical expenses (13%) but spends the least on children’s education (10%).

The study also indicates that in the last six months, almost 60% of people had purchased fashion products like apparels and accessories, with Gen Z showing a greater inclination towards purchasing fashion products and electronics.

Household Expenses witness a notable uptick, with an average increase of 6%. In households with more than one earning member, the chief wage earner (CWE) contributes ~80% of the total household expenses, while non-CWE contributes ~20%. In the study, 42% of the women are CWE in their respective households.

In terms of Savings, ~60% of consumers prioritise building a cash reserve to address emergency expenses after covering their monthly fixed expenses. According to the study, Men (62%) outpace Women (50%) in savings. Similarly, Gen Z (68%) demonstrates a stronger inclination towards savings than Millennials (62%) and Gen X (53%). Regionally, consumers from the East exhibits higher savings rates (63%) compared to those from the West (61%), South (59%), and North (59%). Furthermore, metros led in savings, with 62% of urban consumers prioritising savings over Tier 1 (61%) and Tier 2 (54%) cities.

As per the study, one-fifth of consumers; (21%) have been victims of Financial Fraud. Cities such as Delhi, Kolkata, Hyderabad, and Pune report a higher prevalence of financial fraud incidents. Men, Gen Z, and consumers from the North recalled receiving frequent fraudulent calls and messages over the past months. The study also revealed that 19% of consumers store their financial data on their smartphones, while 24% shared such sensitive data with their friends and family, indicating a complacent approach to data security. Interestingly, Women, Gen Z, and residents of the South region exhibit higher levels of complacency in this matter.

In the realm of digital transactions, UPI (Unified Payments Interface) remains a focal point, warranting heightened vigilance and security measures to mitigate the risk of financial fraud. The study indicates that 72% are current users of UPI, with most usage among men, Gen Z, and metro residents. Notably, UPI usage is the highest in Chennai (90%) and lowest in Ahmedabad (58%).

Furthermore, the study shows that 42% of consumers, especially men, Gen Z and Tier 1 consumers, expressed interest towards using Credit on UPI. Interestingly, the reasons to use “Credit on UPI” includes reduced timeframe in taking loans (53%), ease of payments at retail stores (44%), probability of getting better offers (23%), and lesser charges (16%).

Home Credit India Brings Affordable Healthcare Protection in partnership with DocOnline – Care360 in the New Normal

Home Credit 2

New Delhi, 20, 2021: Health is Wealth is a life’s reality and it was reiterated most profoundly to us in 2020 when Covid-19 struck. It is now imperative for us to keep up with our health as we begin to live in the ‘new normal’ and Home Credit India, a local arm of the international consumer finance provider, today brings for everyone an affordable Protection – Care360 healthcare service with complimentary insurance in partnership with DocOnline.

Care360 is a holistic healthcare service protection, encompassing the important and practical services required for a healthy life. In partnership with DocOnline, a Care360 member (with up to 4 family members) will get free & unlimited tele/video Doctor consultations, Covid care during isolation/quarantine, Cashless OPD, Online pharmacy and quality diagnostic service. Along with health services, Care360 members will also benefit from the complementary Insurance bouquet worth up to
Rs 10Lakhs covering Term Life, Critical Care, Specific Ailment Insurance, Home Contents and Online Fraud Protection.

All these and some more services come at a very affordable cost as customers opting for Care360 higher subscription plans on HCIN website (https://www.homecredit.co.in/en/care360-protection) or at retail partners, will be given a free of cost Ujjwal EMI card with pre-set subscription plan credit amount, which gets converted into easy Zero-Cost EMIs. Hence, the customer doesn’t pay anything upfront for the subscription.

Commenting on the launch of Care360 healthcare service, Mr. Prosonjit Basu, Chief Strategy Officer, Home Credit India said; “At Home Credit, our endeavour has always been to enable peoples’ lives by being their partner in good and tough times. Post-pandemic life will have its challenges & fear and so we have introduced our Care360 product to provide accessible & affordable healthcare services to all anytime and anywhere. With an aim to provide comprehensive services and to safeguard any financial loss emerging due to any medical emergency, these comprehensive offerings will fulfil our customer’s health and wellness goals. We are committed to our customers & partners and will continue to extend support in every way.”

Care360 service is available in three subscription plans – Essential, Advantage and Premium, having all the health services on varied scales.  Online Fraud Protection is very apt in today’s digital age, as it covers the customer from theft or fraud via cashless payments – ATM fraud, Net-banking, credit/debit card or any kind of online or digital wallet transactions.

Benefits of the Care360 for customers include:

Features Care360° – Essential Care360° – Advantage Care360° – Premium
Unlimited Doctor Consultation on phone/video Yes Yes Yes
Periodic Health
check-ups
2 Vouchers

worth INR 3,000

3 Vouchers
worth INR 4,500
4 Vouchers
worth INR 6,000
Pharmacy voucher INR 500 INR 1,000 INR 1,500
Cashless OPD Discounted Rate 4 Vouchers

worth INR 2,000

5 Vouchers

worth INR 2,500

DocOnline Eco-system

for pharmacy, pathology

& radiology discounts

Yes Yes Yes
Complimentary Insurance
Term Life Insurance 1 Lac 2 Lacs 3 Lacs
Critical Illness Cover

(Lump sum benefit)

1 Lac 2 Lacs 3 Lacs
Health Insurance

Vector Borne Diseases

15K 25K 50K
Health Insurance

Gastrointestinal Infections

15K 25K 50K
Home Contents Protection 1 Lac 2 Lacs 3 Lacs
Online Fraud Protection

(ATM, Phishing, Net-banking)

10K 20K 30K
Number of Members 4 4 4
       
Pay premium using Ujjwal EMI Card at NO Cost No Available Available Available
Cost (Including GST) INR 3,500 INR 7,500 INR 10,000

DocOnline will activate membership within 48 hours of subscription. Members will receive their membership information on Email and SMS. Members can log in to the DocOnline app/website with the membership information immediately. Alternatively, customers can also Call at 8822 126 126.