Personal loans with an increase of 14.4% in July at Rs 55.3 lakh crore as compared to the previous month, personal loans in India have been progressing at a fast speed. The main causes of credit card dues and loans against gold jewelry which have been two segments that have grown enormously in the recent past may be the main drivers of growth in the credit sector. Smart comparison of this statement with credit card dues to gold jewelry loans (credit card dues at 22% and gold loans at 39% over a year) these segments are shaking up the scope of personal loans.
Credit cards coming in as the key prop for the short-term tag of Rs 2.8 lakh crore transactions in outstanding balance as of July. This sudden increase in credit card debt points to a growing dependence on credit for everyday spending as well as for emergencies.In one hand loans against gold jewelry which now are 0.8% of the total bank credit, grown at a phenomenal 39% have reached new heights. One of the most appealing to the customers seeking quick cash are the gold loans because of the authentically simple and rapid processing. Interestingly, among the personal loans, home loans still are the largest category, though it is only growing at a slower rate of 12.8% to Rs 21.1 lakh crore. There has been faster growth in credit cards and gold loans than that.
Despite home loans continuing to dominate, credit cards and gold loans offer consumers more flexibility and speed in accessing funds. If you’re considering a personal loan, now is an excellent time to explore various options to meet your financial needs – whether it’s through a credit card or a home loan. The borrowing landscape is changing, and it’s important to stay ahead of the curve.
