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Bank Loans in 2023: With the changing times, the financial needs of the people are increasing rapidly. People are taking bank loans for money. People did not back down even as interest rate hikes rang in 2023. Bank retail loans grow by 18% in 2023 over 2022. Of these, unsecured loans constitute the largest portion.
According to Reserve Bank of India (RBI) latest data… personal loans & credit card spending will increase by 22% & 28% respectively in 2023 over 2022.
According to a Bank Bazaar report, now, there are 9.4 crore credit cards in our country. The average transaction value of these is Rs. 5,577.
Till November 2023, banks will have an average of Rs. 1.71 lakh worth of personal loans have been given.
Last year, of the total loans given by all the banks in the country, 92% of the loans went to just 4 segments. Those 4 segments… Housing Loan, Personal Loan, Vehicle Loan/Auto Loan, Credit Card Debt. Loan demand increased by 18% in 2023 compared to 2022, despite banks charging huge interest in these four segments. Last year, the total loan disbursed to these 4 departments was Rs. 41.97 lakh crores.
In 2023, till November, loans given by banks:
Home Loans —- 18,73,413 crore in 2022 —- 21,44,376 crore in 2023
Personal loans —- 10,29,723 crore in 2022 —- 12,59,170 crore in 2023
Auto Loans —- 4,60,871 crore in 2022 —- 5,53,154 crore in 2023
Credit card debt —- 1,88,033 crore in 2022 —- 2,40,656 crore in 2023
Loans on FD —- 97,857 crore in 2022 —- 1,13,973 crore in 2023
Education Loans —- 91,790 crore in 2022 —- 1,10,715 crore in 2023
Gold loans —- 85,288 crore in 2022 —- 1,00,004 crore in 2023
Consumer durable loans —- 20,624 crore in 2022 —- 22,205 crore in 2023
Loans against securities —- 8,273 crore in 2022 —- 7,872 crore in 2023
Surprisingly, last year the people who jumped for home loans, personal loans… consumer durable loans (loans taken for home appliances) turned their faces. In 2023, consumer durable loans declined sharply, growing only 7.7% last year compared to 41.4% growth in 2022.
The education loan segment, which slowed down in 2022, is back on track in 2023.
Home loans share 47% – Personal loans share 20%
According to the Bankbazaar Aspiration Index… in 2023, home ownership is one of the top three goals of people. This is the reason why the demand for home loans is increasing despite high interest rates. In this segment, all the banks together have sanctioned more than Rs.21.44 lakh crore loans. Last year, home loans accounted for 47% of total bank loans.
The home loan ticket size also increased last year. The average home loan sanctioned in 2023 was calculated to be Rs.28.19 lakh. In metro cities it averages Rs. 33.10 Lakhs & Rs.22.81 Lakhs in Non-Metros.
As inflation in the country has come under control, hopes of a cut in bank interest rates in 2024 are high. It is expected that if the interest rates come down, the housing loans will increase even more.
According to a Bankbazaar report, the number of people taking personal loans will increase by 22% in 2023, but the average loan amount has been decreasing since 2019. Last year, personal loans accounted for 20% of total bank loans.
When it comes to credit cards… total number of credit cards crossed 9.4 crore in October 2023. Also, credit card charges also hit a record high of Rs. 1.79 lakh crores. During Diwali last year, the average spend on the card increased from Rs 5,052 to Rs 5,577. This is an increase of 10.4%.
Although credit card rewards will decrease in 2023… credit card spending will increase as co-branded cards and new offers increase. In particular, demand for co-branded credit cards has increased.
Another interesting story: ICICI Bank shocks scammers – cut in credit card benefits, reward points
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