The Great Indian Wallet’ Study By Home Credit India Reveals Surging Confidence In Financial Well-Being

Study conducted across 17 cities, with sample size of approx. 2500 in the age group of 18-55 years, with an annual income between Rs. 2 lakhs to Rs 5 lakhs

The Great Indian Wallet Study by Home Credit India (HCIN) provides a comprehensive overview of the financial behavior and trends among urban and semi-urban consumers in India. Here are some key findings from the study:

Income and Financial Expectations:

    • 74% of consumers expect their incomes to increase by the next year.
    • 66% anticipate saving and investing more in the coming year.
    • Hyderabad has the highest average personal monthly income at 44,000 INR.
    • The average monthly income in 2024 is 35,000 INR for metros and 32,000 INR for Tier 1 & 2 cities.

    Primary Expenses for Lower Middle-Class Indians:

      • Grocery (26%) and rent (21%) are the largest expenses.
      • Monthly expenses average 19,000 INR against an average income of 33,000 INR.

      Recreational Activities:

        • Popular activities include local city travel, sightseeing, eating out, and cinema.
        • Chennai leads in spending on these activities, while Lucknow spends the least.

        Usage of Credit on UPI:

          • 42% foresee using credit on UPI, a feature enabling instant credit through UPI apps.
          • Motivations include time-saving (53%) and ease of shopping (44%).
          • Concerns include potential debt traps (31%), overspending (28%), higher interest rates (24%), and charges (7%).

          UPI Service Usage:

            • 64% would stop using UPI if it became chargeable.
            • Currently, 72% use UPI, with the highest usage in Chennai (90%) and the lowest in Ahmedabad (58%).

            Spending Patterns and Discretionary Spending:

              • Chennai spends the most on local travel, dining out, and cinema.
              • Bangalore and Kochi spend the most on children’s education.
              • Dehradun spends the most on medical expenses.

              Savings and Financial Security:

                • 60% prioritize building cash reserves after fixed expenses.
                • Men (62%) save more than women (50%).
                • Gen Z (68%) leads in savings, followed by Millennials (62%) and Gen X (53%).
                • 21% of consumers have experienced financial fraud, with higher incidents reported in Delhi, Kolkata, Hyderabad, and Pune.

                Regional and Demographic Insights:

                  • East India exhibits higher savings rates (63%) compared to other regions.
                  • Metros lead in savings with 62%, followed by Tier 1 (61%) and Tier 2 cities (54%).
                  • Gen Z, men, and metro residents are more likely to use UPI and show interest in Credit on UPI.

                  These findings reflect a positive consumer sentiment driven by economic growth and rising incomes, while also highlighting concerns about financial security and the cautious adoption of new financial technologies.

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