Vehicle loans saw highest growth rate in five years during the festive month of October consumer durable loan They grew at their highest pace since 2019, according to Reserves data Bank of India, Vehicle loan disbursements grew 22% year-on-year in the first three weeks of October, while consumer durable loans from banks grew 57% and credit card outstanding 28%. Consumer durable loans are given for the purchase of household goods, consumer electronics and appliances, furniture and mobile phones.
To be sure, the latest reserve Bank of India The data is till October 21, 2022, which mostly includes Diwali consumption as the festival was on October 24. Last year, Diwali was on November 4, which means last year’s festive credit disbursement would have taken place throughout October and the first few days of November. ,
According to industry executives, the share of loan-based purchases of cars has increased by 2 percentage points to 80% this festive season from 78% last year, while 45% of total purchases for consumer electronics and smartphones have increased from 40% last year. % was financed against. ,
He said banks have kept vehicle loan interest rates competitive despite stringent rates, while electronics brands are offering no-cost EMI offers in smaller cities with tenures of up to 24 months.
Shashank Srivastava, Senior Executive Officer (Marketing & Sales). Maruti SuzukiThe increase in the weighted average selling price of vehicles and the need for lower down payments has meant an increase in the number of loans as well as the value of loans disbursed, it said.