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Retail loan demand sees uptick, but banks may be wary of lending

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Earlier this month, Mint reported that banks did not expect retail loans to pick up immediately, as consumer demand could take some time to recover from the covid-19 impact (bit.ly/2A430XT).

Supply side issues such as real estate projects being stalled meant that new buyers would not enter the market immediately. But contrary to this, lenders such as HDFC Bank and the State Bank of India have reported an uptick in demand for retail loans.

But this doesn't mean that banks will be as quick to lend. “It’s no surprise that there has been an increase in the demand for retail loans, especially personal loans and credit cards, given the financial climate right now.

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