As per a recent press report the banks in India are now willing to sanction more personal loan than before. According to the report, an IT professional said that he was sanctioned a personal loan in no time last week after he responded to a SMS offering the loan, this sums up the positive shift in the banks.
The report further said that the banks after tightening their purse strings on personal loans till recently, are now increasingly forthcoming in the sanction of such loans. Further till two years ago personal loans were aggressively marketed by the private sector banks. But then due to the concerns on the asset quality, they were halted.
The report also said that the banks advertise about their personal loans through SMS and ATMs to reach a wider audience. Further, some banks such as HDFC banks provide loans even to its non-customers.
As per the report, a spokesperson of HDFC bank said that the bank is sanctioning personal loans to both customers and non customers. ICICI bank is also into personal loans that are being sanctioned on the basis of the relationship it has with the applicant.
The reason behind the difference is that the increasing use of data with the Credit Information Bureau of India (CIBIL). As per the report, last year CIBIL report has become more comprehensive and is helping bankers take decisions especially in unsecured loans.