Demand for this specialty has grown significantly as a result of recent corporate scandals

Home, auto credit card inquiries increase while personal loans decrease by 43%

The last few months have seen a steady increase in demand for retail credit products after the initial shock following the Covid-19 epidemic earlier this year. This was stated in the report of Trans Union Sibyl.

By all accounts, annual growth (YoY) growth has not yet reached pre-epidemic levels, but demand for credit has shown a positive momentum. In November 2020, the demand for retail credit (measured by the volume of inquiries) reached 93% of the demand seen in November 2019 and significantly increased from the low level seen during the early months of the epidemic.

The international economy is still reeling from the effects of the epidemic. The demand for credit has seen a positive demand since the lockdown at the beginning of the year as businesses and consumers have embraced challenging circumstances. The increase in demand for credit is an encouraging sign as it is an increase in consumer confidence and an increase in willingness to borrow funds for large purchases.

Inquiry volume for major retail lending products has seen an increase on an annual basis. Factors such as lower interest rates, lucrative payment schemes, and discounts offered by developers are responsible for improving demand for home loans. Home loan inquiry volume increased by 9.1% in November 2020. In contrast, the inquiry volume of personal loans declined by 43.1% year-on-year. Because lenders ’risk-taking ability was reduced.

Demand for NBFCs declined by -69.7% year-on-year in November 2020, when most of the growth in this category was driven by fintech and non-banking financial companies in the pre-Covid period. This is because these companies have shown extreme restraint in giving personal loans to high-risk borrowers. During the same period, demand for fintech declined by -10.2% year-on-year.