Subprime borrowers must keep credit utilisation ratio under check

They must also avoid applying for too many loans within a short span

Retail borrowers in India are hungry for credit and lenders are obliging by giving out loans even to those with a risky profile.

Subprime borrowers now account for 32 per cent of all retail loans, up from 28 per cent in 2019, according to a report by TransUnion CIBIL, a credit bureau.
 

Who is a subprime borrower? 
 

In India, there is no standard definition of a subprime borrower, neither from the regulator nor from the industry.
 

Gaurav Aggarwal, senior director, PaisaBazaar, says, “In many countries, borrowers having the highest perceived credit risk, due to their history of default, delinquency, bankruptcy or