Return inquiries for home and auto loans

Mumbai, Ta. 22 September 2020, Tuesday

In the July-August period of the current year, the demand for home and auto loans in the country has increased again and reached the level of the same period in the year 2017. The percentage of inquiries in home loans was 115 per cent as compared to the same period last year, while the figure for loans against properties was 20 per cent and the number of inquiries for auto loans was 8 per cent as compared to July-August last year, a report said.

Demand for retail credit is on the rise as the economy reopens after the lockdown. The downturn in the auto and real estate sectors is expected to continue. However, it will be interesting to see how inquiries for home and auto loans take shape in the near future.

The highest number of inquiries was seen in public sector banks, as public sector banks continued to operate even during lockouts as compared to private finance companies, and customers continued to circulate in banks.

Amid the economic uncertainty caused by Corona, both borrowers and lenders are taking a cautious approach. Corona's previously stalled inquiry is currently underway. That means the number of people who planned to take out residential loans but were stuck due to the lockdown is higher in the inquiries, a bank official said.

Corona, on the other hand, added that inquiries were being made for auto loans as the flow of buying personal vehicles for health safety was increasing.