Despite the substantial increase in the rates of personal loans, it has not been able to stop people from buying personal loans. As a matter of the personal loan sale has gone up considerably.
When surveyed by RBI, they found out that, in June 2011 the total amount of personal loan bought were Rs 695,257 crore, which can be recorded as a growth of 17.3 per cent in comparison to June2010. But the growth during June 2010 in comparison to June2009 was mere 6.6 per cent.
RBI categorizes the personal loans as, loans for consumer durables, housing, education, vehicles and loan against shares and fixed deposits.
The CMD of Canara bank, Mr S Raman believes that there are many factors that affect when one is planning to take personal loans and interest rate is one of them. Many other factors like festive offers, discounts and attractive property prices also play a very crucial role.