Kerala prefers gold as collateral security for availing loans
Synopsis
Agricultural loans amounted to 30% of total retail loans disbursed during last two financial years Mortgage, personal loans and loan against credit card amount to less than 4% of total loans Over 85% consumers in Kerala maintains a CIBIL score above 750
Despite demonetisation, Kerala shows a steady growth in retail loan lending. The data released by CIBIL has revealed that loan against gold makes to almost 35% of total retail loans availed by the state. Agricultural loans come second, counting to 30%, Harshala Chandorkar, Chief Operating Officer of TransUnion CIBIL said.
Consumer loans and two wheeler loans follow the list while mortgage, auto, credit card and personal loans come only below 4% of total retail loans availed by Keralites. As many as 6% loans are two wheeler loans and 5% consumer loans.
CIBIL data shows that retail loan uptake in the state has been raising steadily even in the wake of demonetisation. The trend has been going on for two years. For the last two years, retail loan sector showed a compound annual growth rate (CAGR) rate of 22.76% which is slightly higher than aggregate national CAGR of 21.54%, Chandorkar said.
It was also found that over 85% consumers in Kerala maintain a CIBIL score above 750. "Over 85% loans disbursed in Kerala over past two years were for consumers having an average CIBIL score of 750 or above," she said.
A higher CIBIL score would help consumers avail loans quickly and at cheaper rates. Recently, Bank of Baroda announced to provide loans at the lower interest rate for those having CIBIL score above 750.