Second Covid-19 wave sharply hit consumer credit demand: RBI FSR

The consumer credit deteriorated after the loan moratorium programme came to an end in September 2020

The second wave of the pandemic had a negative impact on the consumer credit demand as inquiries for such loans fell sharply across product categories after a rebound during the festive season in the third quarter of FY21, the half-yearly financial stability report (FSR) of Reserve Bank of India (RBI) said. 

Added to the worse was the stress that was building up in the risk profile of retail borrowers. The consumer credit includes home loans, loans against property, auto loans, two-wheeler loans, commercial vehicle loans, construction equipment loans, personal loans, credit cards, business loans, consumer durable loans, education loans, and gold