RBI data show 64.2% of Indian bank loans below 9%
Business
Big news for anyone thinking about borrowing: RBI data show 64.2% of bank loans in India are now priced below 9%.
That's a huge jump from last year's 43.9%, thanks to the Reserve Bank of India cutting rates by 125 basis points.
So, getting a loan is cheaper than before, but banks are feeling the squeeze as lending rates have dropped faster than deposit rates.
Household credit up over 14%
Most of the credit boom comes from households, with borrowing up by over 14% and personal loans making up nearly a third of all credit.
Private corporates are also ramping up their borrowing, hinting at more business activity.
While public sector banks still hold most of the market, private banks are growing their credit growth, hinting at more business activity.