Retail Credit Demand Slows to 5% in March Quarter, Led by Home Loans, Credit Cards

RETAIL credit demand has witnessed a 5% decline in the March quarter, led by a steep fall in home loans and credit card spends, according to a report.

- ENS ECONOMIC BUREAU @ Mumbai

The segment has been facing headwinds since the Reserve Bank asked lenders to set aside higher risk capital following over 30% growth in unsecured loans.

Home loans declined by 7% in volume and 1% in value; property loans declined by 1% and 15%; and credit card spends plunged by 32% in volume. Two-wheeler loans dipped 1% in volume but grew by 2% in value. On the other hand, personal loans grew by 6% in value, auto loans by 1% and 6%, and consumer durable loans inched up 6% in value and 7% in volume, according to the latest numbers shared by TransUnion Cibil.