Retail Loan Growth Slows as Consumer Demand Dips
May 10, 2019
India is showing signs of slowing down in consumer demand as the rate of growth of education, car, and personal loans slacks further. Until now, unsecured loans have been the mainstay for private lenders, like Axis Bank, ICICI Bank, and HDFC Bank, etc.
While the gross credit of banks in 2018-19 has grown, retail loans are showing signs of a dip, causing a concern that the economy may further slowdown. In segments, like the auto industry, the growth of vehicle loan is impacted along with the personal loan segment, which was high in 2018. Education loans have also taken a hit, with the growth reducing to 2.5% when compared to last years’ numbers.