Reserve Bank of India: RBI has asked to further tighten the background check of the customer before issuing unsecured retail loans and credit card loans. In unsecured loans, nothing is pledged with the banks.
If you are also planning to take a personal loan or credit in the coming time, then this task can be a bit difficult. Yes, sources claim that the Reserve Bank of India (RBI) has asked banks to further tighten the background checks of customers before issuing unsecured retail loans and credit cards. In unsecured loans, nothing is pledged with the banks. This is the reason that their interest rate is higher than other loans.
Credit card and personal loan trend increased rapidly
RBI has warned the banks seeing the increasing risk of sinking of such loans. The Reserve Bank can also curb the unsecured portfolio amidst the increasing risk of default. After the Kovid epidemic, the trend of credit cards and personal loans has increased rapidly. According to statistics, in the year 2022, the number of personal loan borrowers has increased from 7.8 crore to 9.9 crore. Similarly, the number of people taking loans from credit cards also increased by 28 percent to Rs 1.7 lakh crore. Earlier it was 1.3 lakh crores.
Personal loan increased to 40 lakh crore
in the year 2023 also the speed of unsecured loan is increasing rapidly. According to the data released by RBI, as compared to February 2022, personal loans increased from 33 lakh crore to 40 lakh crore in February 2023. That is, an increase of 20.4% was seen in it. RBI believes that unsecured credit growth is a matter of concern amid inflation and rising interest rates.
This is the reason why the Reserve Bank has asked to be strict on unsecured loans in view of the possibility of a possible default. Apart from this, some changes have been made from the side of the banks. Sources say that RBI may increase the risk weight in unsecured loans.
