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India's Borrowers Revolt: Credit Report Woes Surge
2 Dec
Summary
- Credit company complaints surged nearly fourfold in three years.
- Grievances involving loans and advances now exceed 84% of complaints.
- Private banks surpassed public sector banks in customer complaints.
Complaints concerning credit information companies in India have seen a dramatic increase, rising almost fourfold over the past three years. This surge, from 1,039 in FY23 to 4,585 in FY25, highlights significant borrower dissatisfaction, particularly regarding inaccuracies in credit reports. A substantial majority, over 84%, of these grievances are directly linked to loans and advances.
The broader financial system is also experiencing rising discontent, with total ombudsman complaints inching upwards. While banks remain the primary source of grievances, patterns are shifting. Deposit account issues are now the second-largest concern, and credit card complaints have also expanded significantly.
Interestingly, private banks have overtaken public sector banks in complaint volumes for the first time in FY25. This change, alongside steady increases in complaints against NBFCs and payment system participants, reflects the evolving and expanding nature of India's financial sector.
