Given the country's industries have reduced lending 1.70%

 Increase in vehicle loans also due to an increase in vehicle sales at the village level

The country's industries saw a 1.70% decline in lending year-on-year in October. The growth rate of personal loans has also seen a decline. However, medium-sized industrial units have seen strong growth in lending, according to RBI data. Despite a significant reduction in interest rates by the Reserve Bank, loan withdrawals by industries have been slow.

Large enterprises saw a 2.90% decline in credit but medium enterprises saw a 16.70% increase in credit in October. October 2019 saw a 3.40% increase in lending to the industrial sector.

Lending to the agricultural sector has increased by an impressive 7.40% in the current monsoon season, up from 7.10% in October last year.

The growth rate of personal loans was 9.30% in the month of the current year as against 17.20% in October 2019. Vehicle loans are also on the rise due to the increase in vehicle sales at the village level. Vehicle loans have increased by 8.40%.

Overall credit growth, which was 8.30% in October 2019, has slowed to 5.60% in October this year, according to RBI data.