Personal loan growth slows down as banks tighten unsecured credit rules

With the central bank raising risk weights on unsecured consumer loans, major commercial banks and NBFCs have significantly tightened their lending policies. This has led to a natural cooling-off period in the aggressive disbursement of personal loans. Borrowers with marginal credit scores may find it harder to secure instant credit lines, while premium borrowers with an established repayment history remain largely unaffected.