Sharp increase in Personal loans in February 2011
In spite of a sharp rise in interest rates personal loans grew by 16.2%in February 2011. This is higher than the growth of 4.1% last February (2010). Based on the data provided by the Reserve Bank of India (RBI) most of the components of personal loan such as housing, advances against fixed deposits, vehicle loans and education showed accelerated growth.
To quote RBI – “On a financial year basis, growth in personal loans accelerated to 14.8% from 2.8% during the corresponding period of previous year”. On a year-on-year basis, total non-food gross bank credit grew by 22.8% in February 2011, compared with 15.9% in the same month last year.
Also the credit given by banks to the commercial real estate sector grew 17.8% in February, compared to 0.9% during the same month last year. The outstanding credit given to the sector stood at Rs 1.07 lakh crore in February this year, compared to Rs 91,610 crore in the same month last year. “Credit offtake by the commercial real estate (CRE) sector at 17.8% on a year-on-year basis in February 2011 was higher than the growth of 0.9% during the corresponding period of the previous year,” RBI said in a statement. On financial year basis, credit to the CRE sector grew by 17.1% as against a decline of 0.9% during the corresponding period of previous year.
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