<ul data-eligibleForWebStory="false"><li>Growth in unsecured loans has hit an 18-month low, with personal loans and credit card loans growing at 8.3% and 8.5% year-on-year in May.</li><li>This slowdown is attributed to lenders adopting a cautious approach, tightening credit filters, and concerns over borrower over-leveraging and rising delinquencies.</li><li>Private sector banks have seen stress in their unsecured retail loan portfolios, with a higher gross non-performing asset ratio compared to the overall retail portfolio.</li><li>Analysts expect personal loan growth to improve in the second half of the financial year, driven by the festive season and a revival in demand alongside government's taxation benefits.</li></ul>

Unsecured Loan Growth Hits 18-Month Low As Asset Quality Woes Remain

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