The fiscal 2009-10 saw a dull performance by the personal loan segment, according to the macroeconomic report from the RBI.
The rivals of personal loans, viz education loan and home loans however did not display such poor performance. While personal loans showed a 4.7% increase last fiscal as against to 6.6% growth last year, its colleagues did a lot better. Education loans increased by 31.2% (33.8%) while home loans went up by 8.3% (6.4%).
Hatim Brochwala, banking analyst, Khandwala Securities said, “Low home loan (teaser) rates helped the growth in disbursements”. These teaser loans rained during the recovery period. Nearly all banks have stopped the scheme excluding SBI and HDFC Bank.
Brochwala said, “Teaser rates may not stay for more than 2-3 months as interest rates are going up. So the growth in home loans may come down slightly”.
Education loans have also seen an increase. M Narendra, executive director, Bank of India said, “During the downturn, many people went for further studies for which they had taken bank loans. Now that the economy is recovering they can effectively use their higher qualifications pursued during the time of recession”.
The personal loan segment comprised loans against fixed deposits, credit cards etc.
Credit cards portion has suffered a massive set back due to the higher caution against unsecured loans by banks after the recession. The segment saw a 28.3% fall on annual basis.
Get the best deals on loan offers
Some useful personal finance calculators
Also Read:
-
- SBH shows credit growth in Oct – Nov monthstes
- More articles