Due to continuous increase in repo rate, there is a scramble to take loans

Ahmedabad: According to the report of the Reserve Bank of India, there has been an increase of 14% in bank credit at the end of June quarter. On Friday, the central bank said that the credit growth of banks at the end of the June quarter stood at 14 percent year-on-year.

This report has been prepared based on the information provided by 89 Scheduled Commercial Banks of the country. These banks do not include the operations of regional rural banks.

Interestingly, this credit growth figure was 10.7 per cent in the previous quarter and 5.8 per cent in the June 2021 quarter, meaning that despite RBI's ever-tightening policy since the start of the March rate hike, there is still fear that interest rates will rise further and loans may become more expensive. So the loan should be taken now.

The central bank said lending increased despite a 0.21 percent increase in the weighted average lending rate. It is also important to note that after ten consecutive quarters of interest rate cuts, this quarter saw an increase in interest rates to curb inflation. The RBI started raising its rates in early May to curb rampant inflation.