Don't dodge lender if default is imminent; request for loan recast instead

Also explore options such as swapping higher-cost debt with lower-cost alternatives, and debt consolidation

The recently published Financial Stability Report of 2023 reveals that retail loans have grown at a compounded annual growth rate (CAGR) of 24.8 per cent between March 2021 and March 2023. Over the same timeframe, the share of unsecured retail loans (expressed as a percentage of total retail loans) rose from 22.9 per cent to 25.2 per cent. May 2023 saw credit card spends reach a new high of about Rs 1.4 trillion.

Media reports suggest that the Reserve Bank of India (RBI) may increase risk weights on unsecured loans, which include personal loans and credit cards, to tamp down