The recent BankBazaar report titled “Moneymood Retail Credit Trends” highlighted how the growth of the credit market in 2022 underlined a sustained rise in bank credit during the year. The statistics indicate an increase in the number and size of loans sought and disbursed, indicating that many people relied on credit to meet their financial needs.
The report in its 2022 trends shared, “The demand for credit remained high despite massive rate hikes. Home financing had a great year as pent-up demand was serviced. Credit cards became indispensable as the first line of credit. Secured loans such as loans against FDs grew rapidly, indicating a mature borrower segment that does its homework before accessing credit. Small unsecured loans grew the fastest.”
Dev Ashish, Founder, Stable Investor, said, “Given the rise in disposable income and low rates of home loans till just a few months back, there was a solid recovery in real estate demand. But while the recent uptick in loan rates has still not hurt the demand much in the housing space, there might be some demand moderation if loan rates rise further on the back of RBI rate hikes in the next few months. The rate hikes have anyways made home loans dearer. So a further increase in loan EMI outgo may put rate-sensitive borrowers in a dilemma.”
Dependence on credit cards set to rise
Investors are looking forward to an economic recovery in 2023 though the fear of inflation and recession continues to engulf their minds….
