Often due to shortage of money, we may have to take a loan, but now before taking a loan, we must know about many rules of the bank because now the bank has become strict in the matter of giving loan, let us know in the news about the new rules of the banks. Rule.
If you have not taken any loan or credit card yet, then it has become more difficult for you to get a loan than before. According to Trans Union Cibil data, 29 percent new loan applications were approved by banks in the June quarter of 2021 and 2022. At the same time, in 2023 this figure has come down to 23 percent. That means, during the last one year, 5 percent less new credit applications have been approved by banks.
June data also showed a slight decline in loan approval for people with credit scores. However, this is much lower than the expectations of new loan takers. There has been a decline in the approval of new credit in all categories like home loan, loan against property mortgage, personal loan and auto loan.
Why are banks giving less loans?
Usually, whenever a person applies for a loan in a bank, the bank first checks the credit history of that person. In such a situation, when the bank does not get the credit history of a person and is not assured about the repayment, then the bank does not give loan to such people. The decline in approval of new loans shows that banks have made the rules stricter than before to keep the risk low.
Experts say that whenever banks tighten loan criteria to keep their risks low, it first affects people without credit history.
Share of new credit holders fell by 4 percent
According to the data, the share of customers taking new credit in financial institutions fell by 4 percent year-on-year to 15 percent in the April-June quarter. At the same time, the share of Prime customers and above has increased by 6 percent.
