Demand for fuel credit cards increased tenfold in 2021: BankBazaar report

Demand for credit cards offering fuel benefits has increased tenfold due to rising fuel prices in the country, according to a report by online financial products and loan aggregator BankBazaar. Separately, he also said that the average note size for personal loans fell for the fourth year in a row from Rs 1.92 lakh to Rs 1.86 lakh.

According to the BankBazaar Moneymood 2022 report, “Soaring fuel prices are driving consumers to seek all options to lower their fuel prices, and the rewards and perks on fuel cards allow them to do so well. “

The report presents the trends in credit purchases during the current year and the outlook for the following year.

He further noted that the share of fuel cards increased to 13.1 percent of total cards, from 4.95 percent last year, and said that with fuel prices showing no sign easing and reopening offices and schools demand for fuel cards is expected to remain high for the near future.

Besides fuel cards, rewards cards have rebounded strongly to grow more than 100% from last year, according to the report, adding that with personalized rewards, cash back and offers on purchases. online and offline for the essentials, luxury, lifestyle spending and entertainment. , acquisition cards look more attractive than ever, and demand is also expected to increase over the coming year.

Additionally, the report noted that the percentage of female credit card customers increased by about 50 percent, from 8.41 percent last year to 12 percent this year.

“As the number of women opting for credit cards has increased across the board, the change is most noticeable among women under 25,” he said.

The under-25 age group has been the most aggressive in credit card adoption and has risen sharply by 175 percent compared to all other cohorts, which are up about 100 percent.

Shedding light on the personal lending space, the BankBazaar report noted that the average note size for personal loans fell for the fourth year in a row 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 slightly larger than for men at Rs 1.86 lakh.

The average size of loan tickets outside the metro fell sharply to Rs 1.73 lakh in 2021 from Rs 2.19 lakh a year ago. Subways, on the other hand, have soared to an average loan ticket size of Rs 1.91 lakh compared to last year’s average of Rs 1.87 lakh.

“The easing of the average ticket size for loans follows industry trends as a result of tightening unsecured credit policies as well as the increase in loans to small and very small notes,” the report notes.

The BankBazaar report further noted that 2021 was the year of the turnaround after the pandemic for home loans. Despite the setbacks of the second wave of the pandemic, the year has been a time of growth.

“The first quarter of 2021 has started off on a promising note, with average mortgage note sizes reaching Rs 28.43 lakh versus Rs 27.74 alkh in the previous quarter. It dropped with the second wave, in the second quarter, but since the third quarter the ticket sizes have picked up, ”said In.

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