Personal Loans Surge 23%: Indians are becoming borrowers rapidly, huge increase in 6 months, know the status of new credit cards?

Personal Loans Surge 23%: There has been a significant change in the trend of giving loans for homes, cars and other consumer needs in India between April and September. According to a report by JM Financial, there has been an increase in consumption-based bank loans after the recession in the last financial year.

Loans have increased in almost all segments except credit cards. This is a positive sign for the next financial year. In the six months from April to September, all consumer loans excluding credit cards saw an annual increase of 6% to 23%. In contrast, growth in 2024-25 was between -3% and 11%.

35% increase in personal loans in July-September

Among the unsecured loan category, personal loans witnessed the highest growth. Personal loan distribution grew by nearly 23% in the first six months of the current financial year, while in the July-September quarter it grew by 35% year-on-year.

The distribution of consumer durable loans related to TVs, refrigerators, mobile phones and other consumer goods increased from 3% in the last financial year to 19% in the July-September quarter.

Private banks have also increased their market share in this category. However, the credit card segment remained sluggish. In April-September, 28% fewer new cards were issued compared to the same period last year.

Borrowing by people with strong financial position

The increase in personal loans does not mean that people are short of money to spend. This is mostly a sign of increased consumption, but with changes in spending patterns.

First of all, these loans are not being taken for small or emergency expenses. Banks and financial institutions are offering huge personal loans. This means that borrowing is mainly done by people with stable income, secure job and strong credit history.