Banks are not interested in applying for a new loan

Banks are not interested in applying for a new loan

Banks are not interested in first-time borrowers (new to loans / NTC). Credit rating agency Transunion CIBIL said it was giving more priority to current borrowers instead. Demand for this specialty has grown significantly as a result of recent corporate scandals. In addition to consumption, personal loans are said to support demand.

“For the first time in three months ending November 2021, the share of customer loans (NTCs) fell by 14 percent. It was 16 percent in the same period last year and 17 percent in the same period in 2019, ‚ÄĚSibyl said. NTC said banks were acting with vigilance in the case of customers. In the NTC segment, the lending rate fell to 27 percent from 30 percent in the year-ago period. Demand for loans continued to rise, with consumer loans up 97 percent, while demand for personal loans increased by 80 percent, the CIBIL report said.

Debt inquiries increased by 33 percent in January 2022, even after the festive season ended. It said there was a 10 percent decline in January 2021. Personal loans, credit cards, consumer durable loans are at high risk as depreciating assets. Non-performing loans (over 90 days) in the two-wheeler segment grew by 3.64 percent.

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