Credit cards and personal loan levels have tripled in the last five years

Mumbai Ta January 25, 2020, Saturday

There has been growing concern over the recent growth in bank credit growth. While credit growth has fallen to seven per cent, the amount of credit card and personal loan securities has seen the largest growth of the last four years till November of the current fiscal year.

The credit balance on credit cards in the current financial year stood at Rs 1.8 lakh crore, which is three times the peak seen in the current financial year. After that, uninsured loans declined sharply in the country.

The number of personal loans has also increased by 6 times compared to 1, at Rs 1.8 lakh crore.

Loans on credit cards have also been increasing at an annual average rate of 5% since FY 7, after the financial year fell into the top five.

Other personal loans have also increased at an annual average rate of 4% in the last four years. Credit card and other personal loans have significantly increased their share of retail loan portfolios.

Credit card trading, which peaked at Rs 5 crore in the year 1, was reduced by half, but due to the tremendous growth in the last four years, credit card trading has increased three times from the previous level of financial crisis.