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The growing importance of consumer finance for financial inclusion in India

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  • Saon Ray

    (Indian Council for Research on International Economic Relations (ICRIER))

  • Smita Miglani
  • Sandeep Paul

Abstract

The Indian financial inclusion story so far was led by commercial banks and MFIs. While acknowledging the importance of access to credit for productive purposes, a total integration with financial market also means access to services like insurance and consumption loans. This paper examines the role of consumer finance, a high growth segment of the Indian financial sector in promoting financial inclusion. Consumer finance involves granting credit to consumers to enable them to possess goods for everyday use. While the Indian financial sector is changing rapidly, a large number of households still rely on informal sources for unforeseen expenditure. The paper presents results of a survey of consumer perception on the role of consumer credit to financial inclusion.

Suggested Citation

  • Saon Ray & Smita Miglani & Sandeep Paul, 2018. "The growing importance of consumer finance for financial inclusion in India," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 367, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    • Handle: RePEc:bdc:wpaper:367
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    References listed on IDEAS

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    Cited by:

    1. Saon Ray & Smita Miglani & Sandeep Paul, 2019. "The probability of taking a loan: Evidence from Indian cities," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 370, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.

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