Credit cards, personal loans rise

Amidst the economic slowdown, India is witnessing a growth in demand for both credit cards and personal loans. According to the India Retail Credit Trends report released by TransUnion Cibil, consumer credit grew in Q3, CY 2019, fuelled by an increase in demand for these categories. However, overall balance across consumer loan products rose only by 13% as compared to 23.2% during the previous year. Demand for auto loans, home loans and loans against property dropped during July-September 2019. On the other hand, demand for consumption lending products increased. “Growth in credit cards outstanding is significant at this point of time as it does mean that credit is being used for meeting daily requirements. With growth in consumption being more or less stagnant, higher use of credit cards does indicate that households in the lower income levels are meeting daily requirements by borrowing,” said Madan Sabnavis, chief economist, CARE Ratings.