There is a loan available for almost anything sold in the sun – from gadgets and clothes to the food you buy for your pet. Add to the fact that it only takes a few taps on your phone and less than 10 minutes to get the money into your bank. It is therefore not surprising that the demand for personal loans continues to increase year on year as the size of loans continues to decline, according to a report released by BankBazaar.
The average ticket size for personal loans declined for the fourth year in a row, from ??1.92 lakh in 2020 to Rs 1.86 lakh this year, revealed the fourth edition of BankBazaar Moneymood 2022. The drop was steeper for loans taken in non-metropolitan cities, with the size of the note falling to Rs1.73 lakh this year from ??2.19 lakh last year. In comparison, the average amount of loans taken out in metropolitan cities fell from Rs 1.87 lakh to Rs 1.91 lakh for the same period.
This trend can be attributed to the tightening of unsecured credit policies as well as the increase in small and very small loans, BankBazaar said.
“The constraints of the pandemic have increased the importance of credit cards as a first line of credit as well as as the easiest method of payment. Coupled with easy accessibility through contactless application processes through digital KYC, demand for credit cards has rebounded strongly and continues to rise, ”said Pankaj Bansal, Commercial Director of BankBazaar.com.
“Over the coming year, we expect to see a similar acceleration in the loan segments as new mounts return to pre-COVID levels leveraging Digital KYC.”
The report highlights the credit buying trends for the current year and the outlook for 2022.
The report showed a rebound in demand for home loans in the last quarter of the current calendar year. “2021 was the year of the turnaround after the mortgage pandemic. Despite the setbacks of the second wave of the pandemic, the year has been a time of growth, ”he said.
The average ticket size for home loans has increased to ??28.43 lakh in the first quarter of 2021 from ??27.74 lakh in the previous quarter. This fell in the second quarter with the onset of the second wave, however, from the third quarter, ticket sizes picked up, according to the report.
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