Page 2 - Retail Loan

Retail loan book of banks, NBFCs will double to Rs 96 trn in 5 yrs: Report

Loans to MSMEs are also likely to double to Rs 13.2 trillion from Rs 6.6 trillion in FY19

RBI's external benchmark move: All but a few link retail loan to repo rate

According to the Reserve Bank of India rules, banks can choose between repo, treasury rates, or any benchmark set by Financial Benchmark India Private Ltd for the rate setting purpose

SBI to use repo rate as benchmark to price MSME, retail loans from Oct 1

Also, link pricing credit to Medium units to the repo rate

Why borrowers should move to longer-tenure loans to escape debt trap

Those who have loans running should set up a contingency fund

Lenders: Multiple triggers for faster retail loan growth

Overall bank credit has grown at a sluggish pace in the past two years at below 10 per cent. The only silver lining has been the double-digit growth in consumption loans.Private banks have been leading the race, with most lenders reporting retail growth well above 15 per cent. With a 20 per cent rise in pay for central government employees, demand for retail loans should go up further."This year we will see even better retail growth as with the revision in salaries because of the Seventh Pay Commission, it is estimated that about Rs 1 lakh crore more will be available. Also, we have the festive season, when demand picks up anyway. So, it is possible that retail credit growth can be anywhere between 18-22 per cent for the industry," said Ashutosh Khajuria, executive director, Federal Bank.Rating agency ICRA expects annual retail credit growth to improve to about 20-21 per cent in financial year 2016-17 (FY17), as against a 17.2 per cent compound annual growth rate over the past five yea