Worries over liquidity to boost credit card, personal loans: CIBIL

Demand for secured loans — home and auto loans — is expected to see a pronounced dip in the coming quarters as consumers look to stay liquid during the Covid-19 crisis. Products that provide liquidity like credit cards and personal loans will see moderate demand, according to credit information bureau CIBIL.

Unlike the slowdown a decade ago, demand for credit cards and personal loans will remain as consumers look to secure funds to bridge gaps in personal finance. Their availability and market penetration are higher than earlier.

The prevalence of fintech firms has also introduced new, flexible product structures and enhanced access