The banks have again started to influence the customers by introducing new schemes in the personal loan sector after a break of one year.
As the income of the people is increasing the spending capacity of the individuals is also increasing. This fact has motivated the banks to re-enter the arena of personal loan.
According to the central bank second financial stability report released on Thursday, personal loans, which had a negative growth of 3.48 per cent in 2009-10, increased 14.49 per cent in September 2010 year-on-year.
The analysis of the data collected from 47 commercial banks shows an outstanding rise in the credit for personal loan Rs 1,16,353 crore in November from Rs 1,12,389 crore in March.
However personal loans are of very insecure from the bank point of view as they are not lent against any collateral , but since they fetch high income to the bank the banks are very interested in personal loan. The banks charges interest rates ranging between 16 to 19 percent for the individuals that are working for a reputed company . the banks even charges more interest rates if the individual is working for a small or lesser known company.
It remains to be seen if personal loans from the country’s largest private bank will increase over the next few months in line with the larger trend.
