92% out of the outstanding loans are derived from housing personal auto credit card debt.
Here is a summary about the majority of loans being for housing and personal use report Published By RBI 2023:
The Reserve Bank of India (RBI) released some data about loans people have taken from banks.
The RBI found that 92% of current outstanding loans are in just 4 categories:
- Housing loans – for buying homes
- Personal loans – for personal needs like medical bills or travel
- Auto loans – for buying vehiclesÂ
- Credit card debt
This means most loans that Indian banks have given are for housing, personal use, vehicles and credit cards. Only 8% loans are for other categories like business, agriculture etc.
So if 10 friends have taken loans, then 9 out of those 10 loans would be to buy a home, spend on personal needs, buy a car/scooter or pay off credit card bills.
The reason for this trend is that banks want to give “safe” loans now. Earlier banks would lose money if business or farm loans were not repaid. But housing, vehicle and personal loans have better repayment rates.
So nowadays most people take out loans from banks for their housing, personal spending, vehicles and credit card needs rather than for businesses or agriculture.
Let me know if you need any clarification or have additional questions!
Source:- Moneycontrol