Growth in personal loans slows down to 14.2% in Jan: RBI data

FPJ News Service mumbai

Personal loan growth slowed down to 14.2% in the fortnight to January 24, 2025, mainly due to subdued credit offtake of vehicle loans and credit card outstanding, Reserve Bank of India said. The RBI released data on sectoral deployment of bank credit for January 2025 collected from 41 select commercial banks, accounting for about 95% of the total non-food credit deployed.

On a year-on-year (y-o-y) basis, non-food bank credit as of the fortnight ended January 24, 2025, grew at 12.5% (a three-month high) as compared to 16.2% for the corresponding fortnight of the previous year (January 26, 2024). Credit to personal loans segment registered a growth of 14.2% (y-o-y) as on the fortnight ended January 24, 2025, as compared with 18.2% a year ago, largely due to decline in growth rate in ‘other personal loans’, ‘vehicle loans’ and 'credit card outstanding' segments.

It further said that loan to agriculture and allied activities registered a growth of 12.2% (y-o-y) as on the fortnight ended January 24, 2025 (20.0% for the corresponding fortnight of the previous year). Bank advances to industry recorded a growth of 8.2% (y-o-y) as on the fortnight ended January 24, 2025.