Personal loans grew by 12.3 percent in February 2022 on a year-on-year basis, marking a strong pick-up in demand in the segment, data released by the Reserve Bank of India (RBI) showed.
The personal loans segment continued to expand at a robust rate and grew by 12.3 percent in February 2022 from 9.6 percent in February 2021, driven primarily by housing loans and vehicle loans.
The jump in personal loans is indicative of demand revival after a lull during the COVID phase.
Moreover, credit growth to industry accelerated to 6.5 percent in February 2022 from one percent in February 2021, the RBI data revealed.
As per the data, credit growth to medium industries registered high growth of 71.4 percent in February 2022 as compared to 30.6 percent last year.
Credit growth to micro and small industries accelerated to 19.9 percent from 3.1 percent and credit to large industries recorded a marginal growth of 0.5 percent against a contraction of 0.6 percent during the same period, the data showed.
Credit growth to the services sector stood at 5.6 percent in February 2022 as compared to 8.8 percent a year ago. Within services, credit growth to NBFCs improved significantly to 14.6 percent in February 2022 from 7 percent a year ago.Further, credit to agriculture and allied activities continued to perform well, registering an accelerated growth of 10.4 percent in February 2022 as compared to 8.6 percent in February 2021, the RBI said.