Retail unsecured loans to new borrowers fall: BCG

BANKS HAVE REDUCED their share of unsecured retail lending to new-to-credit (NTC) customers by 12-17 percentage points between FY19 and FY25, reflecting an increased conservatism and lower risk appetite, according to a BCG report, released on Monday.

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The retail unsecured book includes personal loans, credit cards, consumer durables loans and two-wheeler loans.

In the previous fiscal, 16 million NTC customers were added, the "second lowest in recent years" the report said.

"The current year may reflect risk aversion by lenders. However, the economy will require a large share of small-ticket, NTC lending to proliferate. At the current rate, it will take over a decade to bring them under formal financing," BCG said in the report.