Consumer Loans

While Japan is by no means alone in confronting a debt problem, salaries are the lowest of Group-of-Seven countries, and the central bank is raising borrowing costs while its peers cut them

Personal loans also showed moderation, with sanctions by finance companies growing by just 1.4 per cent sequentially in Q4FY24

Home loans sanctions contract 2 per cent; consumer loans grow 30%

Deputy Governor Swaminathan J on Friday said the Reserve Bank wants the lenders to "curtail" consumption loans or unsecured credit, where the end-use is undefined. In the comments, which come within weeks of the RBI raising risk weights on unsecured lending to protect financial stability, Swaminathan clarified that the intent of the RBI is not to deny or ration credit. Replying to a question on whether fears of unsecured loans being used to punt on the equity market led the RBI to put some restrictions on unsecured lending, Governor Shaktikanta Das said the question is "very hypothetical" but admitted that there have been some anecdotal write-ups. " What we would like to curtail and expect the lending institutions to provide for more by way of additional risk weight, is some of those consumption-led segments or unsecured credit which do not have a defined end use," Swaminathan told reporters. He said, if there has been a recalibration of the growth number in such credit which sugge

Personal loan and Credit Cards loan may become costly

For other tenor loans ranging from overnight to three year, the revised rates are in the range of 7.80-9.05%, according to Kotak

Among consumer financiers, Mahindra & Mahindra and Cholamandalam Investment look strong on charts, while Bajaj Finance and Muthoot Finance need to overcome key hurdles for an upside, indicate charts.

Did BYJU's bite off more than it can chew? What explains the great Indian brand rush? Is it the right time to invest in consumer financiers? What is Project Cheetah? Answers here

A strong credit growth with pent-up demand is set to push loan books of consumer financing companies. Analysts suggest investors warm up to related stocks but with caveats. Here's a report

Punjab National Bank has raised the marginal cost of funds-based lending rate (MCLR) by 0.05 per cent across tenors from September 1, making most of the consumer loans costlier. The benchmark one-year tenor MCLR, which is used to price most consumer loans such as car, auto and personal, will be at 7.70 per cent against the existing 7.65 per cent, PNB said in a regulatory filing on Wednesday. The three-year MCLR stands at 8 per cent, up by 0.05 per cent. Among others, the rate of one-month, three-month and six-month tenor will be in the range of 7.10-7.40 per cent. The MCLR on overnight tenor will be 7.05 per cent against 7 per cent. Earlier this month, the state-owned lender increased the repo-linked lending rate to 7.90 per cent, up by 0.50 per cent, with effect from August 6 following the increase in repo rate by the RBI.

Among other MCLRs from overnight to six-month tenors, the new rates will be in the range of 6.75-7.45 per cent.

The festive season spanning October-December period saw origination worth Rs 19,356 crore in FY21.

The plan, if implemented, would effectively end the government's laissez-faire approach to the industry.

HDFC Bank's business is back to pre-covid levels, says Aditya Puri

Banks will have to categorise the moratorium loans as special mention accounts (SMA) wherein loans are in the 0-90 days overdue buckets

The demand for consumer loans in India seems to be returning as the adverse effect of demonetisation on the confidence of households wanes. Demand growth was flat in November 2016 over the same month a year before but moved up 15 per cent in January, according to TransUnion CIBIL, a leading credit information agency. The financial system had seen unprecedented consumer credit growth over the earlier four years, including loans for vehicles and homes, cards and other credit products. The announcement on demonetisation created short-term disruption in this, says the agency.However, new data indicates a strong rebound in demand for loans from individuals. A promising indicator for the stability and growth prospects of the credit sector and the economy overall, said Amrita Mitra, vice-president at TransUnion CIBIL. Public sector bank (PSB) executives said loan performance had remained stable after demonetisation but that it would take five to six months for credit demand to become ...