Indians ignore pandemic blues, buy on credit like never before

Indians have shrugged off the pandemic blues and are buying on credit like never before.

Bank loans for the purchase of durable consumer goods like televisions, laptops and refrigerators jumped 60% in FY22, compared to a 21% drop in the previous fiscal year, while that consumer confidence was recovering and economic activity was returning to pre-pandemic levels.

Moreover, consumers who have been affected by the pandemic prefer to buy in installments rather than paying the full amount upfront.

Spending on credit cards grew at a faster rate of 13% compared to growth of 8% in FY21, according to data from the Reserve Bank of India.

“Last year, demand for consumer goods and discretionary spending rebounded as life normalized. Activities like weddings and travel that drive demand for personal loans were back. Wage inflation and job creation also contributed,” said Ambuj Chandna, President, Consumer Goods at


Credit card outstanding amounted to ₹1.48 lakh crore while consumer loans stood at ₹27,618 crore at the end of March 2022. ₹ lakh crore. All of these numbers were above pre-pandemic levels.

“Boost sales of high-end products”

Banks, manufacturers and retailers said the recovery was due to improved economic activity and consumer sentiment last year after the second wave, as well as wider penetration of these payment options. financing in small shops and cities.

“The rebound in domestic economic activity is gradually broadening. Improving contact-intensive services amid recovering urban demand is boosting personal consumption,” RBI Governor Shaktikanta Das said during the meeting. of the meeting of the monetary policy committee which was held recently.

Industry executives said consumer credit programs – both no-fee and low-cost equivalent monthly installment (EMI) – have made deeper penetration in recent months as consumers prefer to buy on easy installments rather than shelling out large sums out of pocket to both go due to stress on personal finances during the pandemic.

President of consumer electronics company Haier India, Satish NS, said nearly 65-70% of all electronic purchases were made on finance. “It’s growing exponentially and even consumers who used to buy with cash are now buying through finance and putting the rest of the money into other avenues of investment. All brands are focusing on it because it helps boost them sales of premium products even though it is a hit since the interest component is our responsibility,” he said.


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