74% of consumers expect their incomes to increase by next year: Home Credit India

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A recent study conducted by Home Credit India noted that 74% of consumers expect their incomes to increase by next year. Further, about two-thirds of consumers expect to be able to save more (66%) and invest more (66%) in the coming year.

The Great Indian Wallet survey was conducted in 17 cities: Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune, Lucknow, Jaipur, Bhopal, Patna, Ranchi, Chandigarh, Dehradun, Ludhiana, and Kochi. The sample size was around 2,500 people aged 18 to 55, with yearly incomes ranging from Rs. 2 lakhs to Rs. 5 lakhs.

The report further indicates that the average Personal Monthly Income in 2024 is 35k for Metros and 32k for Tier 1 and 2 cities, up from 33k (Metros), 30k (Tier 1), and 27k (Tier 2) in 2023.

Among metros and Tier 1 cities, Bangalore, Hyderabad, and Pune emerged as key hubs, providing newer and better opportunities for customers seeking progress. These cities’ earnings are rising, with Bangalore and Hyderabad leading the way at 15% and 33% greater than the national average, respectively.

Furthermore, the survey found that 42% of customers, particularly men, Generation Z, and Tier 1 consumers, indicated an interest in utilizing Credit on UPI. Interestingly, the reasons for using “Credit on UPI” include a reduced timeframe for availing loans (53%), the convenience of payment at retail stores (44%), the possibility of receiving better offers (23%), and lower costs (16%).

“This year’s study reflects an upswing in the overall Financial Well-Being among urban and semi-urban consumers due to the strong economic growth, providing a clear insight into consumer sentiments, spending patterns, and saving habits among various demographics and segments,” explained Ashish Tiwari, Chief Marketing Officer, Home Credit India.