In a first, personal loans are set to account for most of incremental growth in non-food bank credit during 2017-18.
According to the Reserve Bank of India (RBI) data on sectoral deployment of bank credit, personal loans, which include home, vehicle and education loans, accounted for a record 96 per cent of incremental non-food credit in the last financial year till February 16. This is more than double their share in incremental bank credit growth in the previous two years.
Personal loans accounted for 41.6 per cent and 41.5 per cent of incremental credit growth during FY17 and FY16, respectively, (see the adjoining chart). Sectoral RBI data for all of FY18 is not available yet.
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