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Thursday, November 2, 2023

Small personal loans that drove retail lending see signs of stress

Small-ticket personal loans, valued at less than Rs 50,000, have become the fastest-growing segment in retail lending. However, a study by TransUnion Cibil has shown that borrowers of these loans are more likely to default. The delinquency rate for consumers with small-ticket loans was 5.4%, compared to 4.2% in Q2 2022. Despite this, delinquencies in this portfolio have had a minimal impact on overall retail loan books. Lenders need to closely monitor these loans as consumers may prioritize other payment obligations over personal loan payments, indicating financial stress.

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/jv1bOr7

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