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BFSI – Insights From Interactions With Loan Aggregators: ICICI Securities

BFSI I Credit Market Pulse – Insights From Interactions With Loan Aggregators: ICICI Securities

<div class="paragraphs"><p>A customer counts Indian rupee notes at a store in the Dadar wholesale flower market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
A customer counts Indian rupee notes at a store in the Dadar wholesale flower market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

We interacted with loan aggregators including one of the leading financial product distributors in South India to discuss prevalent, prominent and pertinent practices and trends on consumer and lender fronts. Key takeaways:

  1. debt consolidation is incrementally becoming a pertinent practice. Consumers are converting small-ticket unsecured exposure into slightly longer-tenure secured lending.

  2. loans against car are becoming a medium for short-term working capital financing.

  3. home loan plain-vanilla takeover (balance transfer to benefit from lower rates) is reducing while enhancement takeover is as huge as 30-40%.

  4. HDFC Bank Ltd. has consistently got its act well on customers’ digital journey, turnaround time and approval rates.

  5. Bajaj Finance Ltd. is process-driven with quick turnaround and favorable payout structure.

  6. Kotak Mahindra Bank Ltd. follows a branch-specific, customer-specific and product-specific approach.

  7. Poonawalla Fincorp is now making its presence felt in many locations.

  8. Cholamandalam Investment and Finance Company Ltd. is pursuing unsecured lending for the past couple of months.

Click on the attachment to read the full report:

ICICI Securities BFSI Credit Market Pulse Loan Aggregators Interaction.pdf

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