India witnessed a 30 per cent drop in overall credit across all loan categories in the first two months of demonetisation, Credit Information Bureau (India) said.
Gold loans of NBFCs and banks witnessed a significant decline and there was close to a 60 per cent drop in consumer durable loans during November and December last year.
The demand for two-wheeler loans fell 40 per cent, housing loans 27 per cent, personal loans 25 per cent, and auto loans 16 per cent, Harshala Chandorkar, Chief Operating Officer, CIBIL, said.
Among States, Maharashtra, Gujarat, West Bengal and Andhra Pradesh registered significant fall in loan demand, she said, adding that credit growth had started picking up in the New Year.
Card usage Credit card usage during the first two months of the demonetisation period, however, has gone up, registering a 41 per cent increase.
Chandorkar, who was in Kochi for a consumer awareness programme, told newspersons that the overall delinquencies in loans have started coming down, thanks to strategies and credit policies adopted by banks, coupled with consumer awareness on timely payment of loans.
Kerala market Referring to the Kerala market, she said retail loans have seen steady growth, registering a 22.76 per cent rise, slightly higher than the aggregate all-India CAGR of 21.54 per cent over the last two years.
“We will accelerate our efforts to increase awareness among consumers on the importance of a healthy CIBIL score and report for faster and more affordable access to credit,” she said.
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