An unsecured loan that provides credit with the freedom of usage, a personal loan has always been a great financial tool for individuals. It is in the recent past that people in India have been introduced to Online loan app. This has lead to an increase in the popularity of personal loans.
The growth of personal loan
The personal loan popularity has changed is clear from the stats mentioned below:
- In 2020 the personal loan account comprised 28% of the total bank credit.
- Of the total personal loans, 37% was borrowed due to emergencies like medical and health care.
- Where in the past five years, women held only 21.1% of the personal loans, in March 2020, women borrowers rose to 34.2%.
- Growth in the personal loan was up by 28% that in the past year was 33.5% in the same period.
Factors that impacted the growth
The growth in the personal loan was not random, it was driven by various factors like:
- Easier access to online loan apps.
- The moratorium period allowed personal loan borrowers to maintain liquidity of funds when they have a loan on them.
Conclusion
While personal loan stats show the increase in a personal loan, the global pandemic that hit everyone, also has been a major reason. Many people experienced unemployment and in such a situation, the personal loan came to their rescue.
