The demand for credit cards that provide benefits on fuel has risen by 10 times owing to higher fuel prices in the country, a report by online loan and financial products aggregator BankBazaar has claimed. Separately it also stated that the average ticket size for personal loans dropped for the fourth consecutive year from Rs 1.92 lakh to Rs 1.86 lakh.
According to BankBazaar Moneymood 2022 report, “Sky-rocketing fuel prices are driving consumers to look for any and every option to discount their fuel prices, and rewards and benefits on fuel cards allow them to do this well.”
The report showcases the trends in credit purchases during the current year and the outlook for the next year.
It further noted that the share of fuel cards have gone up to 13.1 per cent of the overall cards, up from 4.95 per cent last year, and said that with the fuel prices showing no signs of easing and offices and schools reopening the demand for fuel cards is expected to remain high in the near future.
Apart from fuel cards, rewards cards have bounced back strongly to grow more than 100 per cent from last year, the report said adding that with customized rewards, cashbacks, and offers on online and offline shopping for essentials, luxury, lifestyle spends, and entertainment, shopping cards are looking more attractive than ever, and the demand seems set to rise in the coming year as well.
Additionally, the report noted that the percentage of women credit card customers grew by around 50 per cent from 8.41 per cent last year to 12 per cent this year.
“While the number of women opting for credit cards have increased across the board, the change is most noticeable among women below 25 years,” it said.
The below-25 years age group has been the most aggressive in adopting credit cards and grew strongly at 175 per cent compared to all other cohorts, which grew at roughly 100 per cent.
Shedding light on the personal loan space, the BankBazaar report noted that the average ticket size for personal loans dropped for the fourth consecutive year from Rs 1.92 lakh to Rs 1.86 lakh. However, for the first time, the average ticket size for women at Rs 1.87 lakh was marginally higher than that of men at Rs 1.86 lakh.
The non-metro average loan ticket size fell sharply to Rs 1.73 lakh in 2021 from Rs 2.19 lakh a year ago. Metros, on the other hand, climbed up to an average loan ticket size of Rs 1.91 lakh from last year’s average of Rs 1.87 lakh.
“The softening of average ticket sizes for loans tracks industry trends following tightening of unsecured credit policies as well as the rise of small and ultra-small ticket loans,” the report noted.
The BankBazaar report further noted that 2021 was the year of the turnaround after the pandemic for home loans. Despite reversals from the second wave of the pandemic, the year has been a time of growth.
“The first quarter of 2021 started on a promising note, with the average ticket size for home loans soaring to Rs 28.43 lakh from Rs 27.74 alkh in the previous quarter. This plummeted with the second wave, in Q2, but since the third quarter onwards, the ticket sizes have been picking up again,” in said.