{"id":28159,"date":"2018-10-24T11:05:43","date_gmt":"2018-10-24T05:35:43","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=28159"},"modified":"2018-10-24T11:05:43","modified_gmt":"2018-10-24T05:35:43","slug":"bubble-risk-brews-as-unsecured-loans-rise","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/bubble-risk-brews-as-unsecured-loans-rise\/","title":{"rendered":"\u2018Bubble risk\u2019 brews as unsecured loans rise"},"content":{"rendered":"<p><strong><a href=\"https:\/\/www.thehindu.com\/todays-paper\/tp-business\/bubble-risk-brews-as-unsecured-loans-rise\/article24557525.ece\">\u2018Bubble risk\u2019 brews as unsecured loans rise<\/a><\/strong><\/p>\n<p><strong><u>News:<\/u><\/strong><\/p>\n<p>1.Banks\u2019 unsecured loans are at a record high, contributing 32% to the retail loan basket, which at 25% of the total loan book, is almost at its peak, according to a report by Jefferies.<\/p>\n<p><strong><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-23687 size-full\" src=\"https:\/\/i0.wp.com\/blog.forumias.com\/wp-content\/uploads\/2018\/07\/the-rise.jpg?resize=480%2C432\" alt=\"\" width=\"480\" height=\"432\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/07\/the-rise.jpg?w=480&amp;ssl=1 480w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/07\/the-rise.jpg?resize=150%2C135&amp;ssl=1 150w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2018\/07\/the-rise.jpg?resize=300%2C270&amp;ssl=1 300w\" sizes=\"auto, (max-width: 480px) 100vw, 480px\" \/>\u00a0<\/strong><\/p>\n<p><u>Important facts:<\/u><\/p>\n<p><strong>2<\/strong>. According to the RBI data the overall credit growth as on May 25 was 10.9% year-on-year, while retail loans grew 18.6% and outstanding dues on credit cards grew 33.1%.<\/p>\n<p>3. The RBI observed that retail loans come with their own caveats.<\/p>\n<p>4. However, the delinquency rate, has remained steady, a TransUnion Cibil study showed.<\/p>\n<p>5. Delinquencies for personal loans fell 19 basis points (bps) over the year to 0.52% at the end of March, while for credit cards it rose 9 bps to 1.7%.<\/p>\n<p>6. Indian consumers continue to expand beyond cash-based purchases, these products provide access to short-term liquidity and transactional convenience.<\/p>\n<p><u>7. The Jefferies report highlighted the following points:<\/u><\/p>\n<ul>\n<li>The report, said unsecured personal loans grew the fastest, at 49%, driven by a 27% growth in customers and 19% growth in average ticket size.<\/li>\n<li>The bigger worry is the growth in the \u2018New to Credit\u2019 segment (and the segment [contributes about] 65% of new origination.<\/li>\n<li>The number of consumers with access to credit cards as well as aggregate balances had reached all-time highs.<\/li>\n<li>Credit card outstandings grew 43% till March 2018.<\/li>\n<li>Unsecured loans had grown at a compounded annual rate of 31% over the last four years for the top 5 private banks \u2014 HDFC, Axis, Yes, IndusInd and Kotak Mahindra.<\/li>\n<li>Personal loans and dues on credit cards are examples of unsecured loans, while other retail loans include home and auto loans<\/li>\n<li>Unsecured loans are riskier as they lack collateral that accompany home, auto loans.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Bubble risk\u2019 brews as unsecured loans rise News: 1.Banks\u2019 unsecured loans are at a record high, contributing 32% to the retail loan basket, which at 25% of the total loan book, is almost at its peak, according to a report by Jefferies. \u00a0 Important facts: 2. According to the RBI data the overall credit growth&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/bubble-risk-brews-as-unsecured-loans-rise\/\">Continue reading <span class=\"screen-reader-text\">\u2018Bubble risk\u2019 brews as unsecured loans rise<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-28159","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704904641},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=28159"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/28159\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=28159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=28159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=28159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}