RBI insecure about unsecured loan surge
Between FY18 and H1 FY24, credit card loans trebled to ₹2.2 lakh crore while personal loans grew 2.5 times to ₹13.4 lakh crore
personal loans
November 2023
April 2023
January 2023
November 2021
April 2020
January 2020
Bank-NBFC links merit close attention: RBI governor
Such concentrated linkages may create a contagion risk, says Shaktikanta Das
Bank, NBFC stocks fall as RBI tightens norms for personal loans; SBI, Axis Bank top losers
The RBI has increased the risk weights on unsecured consumer loans, including credit cards, by 25% for both banks and NBFCs.
Consumer loans may get expensive as RBI hikes risk weight by 25%
This excludes housing loans, education loans, vehicle loans, loans secured by gold and gold jewellery, and microfinance loans
Infographic: Rise in personal loans: Home loans back in focus
Housing loans account for more than 48% of personal loans for banks as of December 2022, as per the RBI data.
Budget 2023: The hidden trap in India’s consumer loan surge
‘Personal loans’, rather than credit to agri, industry, and services, remains at the top and drive credit offtake, which needs to be corrected to avoid low-middle income trap and stalling growth
India’s growth prospects anything but bright
Prolonged cheap credit regime has led to a clear liquidity trap and irrational stock market boom, both of which are bad for the economy.
Eased liquidity may not have takers
With most industries having made a hard stop, the ‘productive on-lending’ that the RBI envisages may remain a pipe dream.
Delinquencies across retail loans increase: CIBIL
The increase in delinquency rates was not uniform; It was most pronounced for loans against property, home loans, and credit cards. Overall delinquencies improved for auto loans.
