Even after increased focus on retail lending for a decade, banks and other lending institutions have been able to tap only into a third of the estimated 220 million credit-eligible consumers.

This leaves financiers with 150 million consumers who are eligible for credit but are untapped, credit information company TransUnion Cibil said in its report recently.  Of the eligible population of 220 million, only a third, or 72 million, are “credit active” having a live account with a bank or lending body.

The missing 150 million includes those who qualify the lending criteria from the age and income perspective and also those who may have availed some credit facility in the past but are currently inactive or dormant. This segment promises retail lending opportunities for the lenders through products such as credit cards, personal loans and consumer durable loans, the report said, adding that it will also give a ‘major boost’ to the economy.

Source: Bloomberg Quint