In May 2024, housing loans grew faster while personal loans slowed down compared to the previous year, according to the Reserve Bank of India. Housing loans, the biggest part of personal loans, increased by 16.9% to Rs 23.49 lakh crore from Rs 20.09 lakh crore a year ago. Meanwhile, personal loans overall grew by 17.8% in May 2024, down from 19.1% last year, mainly due to slower growth in other personal loans.
Credit card debt went up by 26.2% to Rs 2.67 lakh crore in May 2024 from Rs 2.12 lakh crore a year earlier, as per RBI data. In November 2023, RBI raised the risk weight on bank exposure to consumer credit, credit card receivables, and non-banking finance companies (NBFCs) by 25% up to 150% to manage risks in these areas.
Non-food bank credit grew by 16.2% year-on-year to Rs 162.30 lakh crore in May 2024, up from 15.5% a year ago. Bank loans to industries increased by 8.9% to Rs 36.87 lakh crore in May 2024 from 6.0% in May 2023, according to RBI data.
Credit to agriculture rose by 21.6% year-on-year to Rs 21.39 lakh crore in May 2024, up from 16.0% a year earlier. Services sector credit grew by 20.7% in May 2024, down from 21.3% last year, supported by stronger growth in commercial real estate, transport, and professional services.
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