Easy credit piling up leverage: BCG study

While the share of gold loans in total loans saw an increase, its ticket size reduced significantly

The leverage of retail customers is on the rise with credit expansion reducing the number of ‘new to credit’ customers. As more customers are brought into the credit fold, the pool of potential new customers shrinks.

Among the customers taking a new loan in 2017, 40 per cent had two or more existing loans (35 per cent in 2015) and 30 per cent had more than Rs 1 lakh outstanding balance on existing loans (25 per cent in 2015), says a report by the Boston Consulting Group.