— admin @ 6:31 am — 
December 31, 2009Stricter norms related to unsecured lending have led to a decline in the demand of retail loans. As per the data, personal loans declined by 0.1 percent in the year up to October 2009 as compared to a 15 percent rise a year ago.
As per RBI, personal loans include loans for housing, credit card outstanding, consumer durables finance by banks, education loans and advances against fixed deposits. During the previous five years this segment has been the main growth driver for most entities.
To combat the credit crisis, banks formulated tighter norms for unsecured lending.