Loan demand is increasing in small cities, 47 percent jump in loan demand from Tier-3 cities

The pattern of retail loans has changed a lot during the Corona period. The demand for consumer loans is coming more from non-urban areas as compared to metro and big cities. 70% of consumer loans are being disbursed outside Tier-1 city. Searching for loans from small cities is 2.5 times higher than from big cities.

According to a study by Trans Union CIBIL and Google in a report published in the Times of India, there has been a 47 percent increase in loan searches in Tier-3 cities. It has increased by 32 percent in Tier-2 cities and 28 percent in Tier-4 cities. India’s retail credit industry is worth about $ 613 billion i.e. 44 lakh crores. It is witnessing an increase of 18 per cent on a yearly basis since 2017. In this, the home loan figure is $ 290 billion i.e. 21 lakh crore.

The report said that due to digitization, the volume of small loans has increased significantly. Loans of less than 25 thousand have increased 23 times since 2017. Most of the borrowers of these loans are in the age group of 25-45 years. According to the report, consumer credit demand has increased significantly.

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