1 / 10Secured loans take center stage: Retail lending grew by 16%, reaching ₹5.2 trillion in 2024. Secured loans, especially home and gold loans, fueled this growth. Home loans: Demand surged, with an 18% rise compared to 14% in 2023; Gold loans: This category saw a whopping 56% growth, marking the fastest pace among all lending types.
2 / 10In contrast, unsecured loans like personal and auto loans slowed, especially for smaller-ticket amounts under ₹50,000. Prime borrowers, however, continued to access larger loans.
3 / 10Credit card usage hits new highs: India now has 106 million credit cards in use. Monthly spends reached ₹2 trillion, despite regulatory changes and increased defaults. Credit card debt grew at 17%, indicating robust consumer spending. With less than 6% of Indians owning a credit card, the potential for further growth remains significant.
4 / 10Mutual funds dominate over fixed deposits: The preference for SIPs over FDs widened to a record 5%. Mutual funds attracted investors seeking higher returns amidst inflation and low debt yields. 62% of respondents invested in mutual funds, up from 54% in 2023. Despite rising interest rates, FDs held steady at 57%.
5 / 10Gold shines bright: Commodities had another stellar year. Gold investments grew by 30%, driven by economic uncertainty and inflation. With a 23.34% annual return, gold outperformed several asset classes.
6 / 10Crypto loses sheen: Cryptocurrency investments plummeted, with only 12% of respondents opting for this volatile asset compared to 32% in 2022. High taxes, lack of regulation, and security concerns contributed to its decline.
7 / 10Decline in life insurance: There was a dip in the uptake of life insurance. The share dropped to 37%, as investors shifted towards market-linked instruments for better returns.
8 / 10Decline in postal scheme investments: Interest waned due to low liquidity and reduced yields.
9 / 10Health insurance sees modest growth: Health coverage improved marginally, but fewer Indians had both life and health insurance. Alarmingly, the proportion of uninsured individuals nearly doubled.
10 / 10Retirement planning gains momentum: Retirement planning remained a priority, with two-thirds of respondents stating they are on track to achieve their goals. The F.I.R.E (Financial Independence, Retire Early) trend saw a rise in adoption, particularly among younger age groups.
