Personal loan tremendous boom in the last two years, during this time people took maximum loans from banks
Newz Fast, New Delhi: The total personal loan size increased from Rs 6 lakh crore in March, 2021 to Rs 8 lakh crore in March, 2022. In March, 2020 it was Rs 5 lakh crore.
Personal retail loan disbursement has registered an impressive 42% growth between March 2021 to March 2022. This increase reflects the state of recovery in the overall economic and business sentiment, which was hit during Kovid-19.
This has been revealed in a study by data analysis and technology companies Equifax and Andromeda.
Huge jump in the last two years
The study states that the number of active personal loans increased from 35 million by March 2020 to 40 million by March 2021 and to 60 million by March 2022.
According to the study, the total personal loan size increased from Rs 6 lakh crore in March 2021 to Rs 8 lakh crore in March 2022. In March, 2020 it was Rs 5 lakh crore.
The study also revealed that the size of personal loans increased from Rs 5 lakh crore in March 2020 to Rs 6 lakh crore by March 2021 and to Rs 8 lakh crore by March 2022.
The maximum number of personal loans were disbursed by NBFCs i.e. non-banking financial companies.
What do these figures show?
Equifax Credit Information Services Pvt. Ltd. KM Nanaiah, Managing Director and Regional Head (India & MEA) of India, said, “The rise in personal loans is a strong sign of revival in consumption in the country.”
Also, R Kapoor, Co-Chief Executive Officer (CEO), Andromeda Sales & Distribution Pvt Ltd said, “If the growth trend of personal loans continues, we can assume that the economy will perform well in the coming years.” .
However, the trend of increasing interest rate has to be kept in mind. The reason for this is the three-time hike in the policy rate by the Reserve Bank of India in four months.
According to the study, total outstanding retail loans increased to Rs 89 lakh crore in March 2022 from Rs 80 lakh crore in March 2021 and Rs 71 lakh crore in March 2020.
Private sector banks registered the highest growth of 32 per cent in outstanding personal retail loans during March 2020 to March 2022. At the same time, the share of public sector banks stood at 21 percent.