Personal loan growth rises to 16.9% in August: RBI

Personal loans, which constitutes one-third of the total bank credit, grew 16.9% year-on-year by the end of August, backed by high growth in verticals like gold loans, and loans against fixed deposits, data from Reserve Bank of India showed.

The growth print was 11.9% in the same period last year.

However, while segments such as housing and vehicle loans show higher growth print as compared to the year-ago period rates, the pace of growth in credit card outstanding and loans against gold jewellery decelerated.

Housing loans, the biggest contributor in the personal loan pie, grew 11.1% year-on-year to Rs 35.6 lakh crore, against 9.7% print a year prior. The personal loan outstanding was at Rs 72.9 lakh crore,

Vehicle loans grew 19.7% to Rs 7.8 lakh crore as compared with 8.7% growth a year back.


Gold loans, which has seen a phenomenal expansion last year with 130% surge, saw a moderated 83.2% rise to Rs 5.6 lakh crore. Most banks do not classify agriculture loans backed by gold ornaments as collateral as gold loans.
Credit card outstanding grew 3.6% to about Rs 3 lakh crore, against a 4.4% expansion a year prior.Bank credit to agriculture and allied activities registered a 17.2% year-on-year jump to Rs 27.3 lakh crore against 7.6% same time last year

Credit to industry recorded a 18.2% rise to Rs 45.8 lakh crore against 7% in the corresponding period a year prior. Credit to services sector registered a year-on-year growth of 24.3% to Rs 63 lakh crore, data released on Wednesday showed.

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