#A3RT ``Trust & Trade``

In 2023, retail lending grew by 18 percent year-on-year (YoY), with unsecured lending (loans not backed by collateral) continuing to see high growth. Personal loans and credit card spending grew at 22 percent and 28 percent respectively, as per the latest Reserve Bank of India (RBI) sectoral credit growth data in the sixth edition of the BankBazaar Moneymood Report. The report summarises retail credit trends in the year gone by and expectations for 2024.

India now has 94 million credit cards that service transactions worth Rs 5,577 on average. As per Bankbazaar, the average personal loan amount disbursed in 2023 was Rs 1.71 lakh.

High-interest rates and elevated inflation did little to slow down the demand for credit.

One of the key developments in 2023 was the RBI applying the brakes on unsecured and small-ticket loans. This has been seen as the central bank proactively managing the excess growth of small loans before asset quality worsens in this category.

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