PW Bureau
Increase in loans is evident from the higher growth in per capita loan amount versus per capita GDP (gross domestic product) growth. In FY18, the per capita GDP rose 8.5%, while the per capita loan amount increased 17.9%
New Delhi: Retail loan rates have registered a compound growth rate (CAGR) of 16.4 percent but the CAGR for number of loan accounts has only been 7.5 percent in the last five fiscal years, data from the Reserve Bank of India’s trend and progress of banking report says. But with individuals earning more, the increase in loans could result due to a rise in incomes.
The data reveals that an average Indian is borrowing far more than what the growth in his income would warrant. This is evident from the higher growth in per capita loan amount versus per capita GDP (gross domestic product) growth. In FY18, the per capita GDP rose 8.5%, while the per capita loan amount increased by 17.9%.