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There's a loan available for almost everything being sold under the sun - from gadgets to apparels to even the food you buy for your pet. Add to the fact that it only takes a few taps on your phone and less than 10-minutes to get the money in your bank. It’s not surprising, therefore, that the demand for personal loans keeps rising year after year while the size of loans keeps shrinking, as per a report released by BankBazaar.   

The average ticket size for personal loans reduced for the fourth consecutive year from 1.92 lakh in 2020 to Rs1.86 lakh this year, revealed the fourth edition of BankBazaar Moneymood 2022. The drop was stronger for loans being taken in non-metro cities with the ticket size falling to Rs1.73 lakh this year from 2.19 lakh last year. In comparison, the average size of loans taken in metro cities rose from Rs1.87 lakh to Rs1.91 lakh for the same time period. 

This trend can be attributed to tightening of unsecured credit policies as well as rise of small and ultra-small ticket loans, said BankBazaar.

“The constraints of the pandemic increased the importance of credit cards as the first line of credit as well as the easiest payment mode. Coupled with easy accessibility due to contactless application processes via digital KYC, the demand for credit cards bounced back strongly and continues to rise," said Pankaj Bansal, chief business officer, BankBazaar.com.

“In the coming year, we expect to see similar acceleration in the loan segments as new originations return to pre-COVID levels riding on Digital KYC."

The report highlights the credit purchase trends of the current year and the outlook for 2022. 

The report showed a rebound in home loan demand in the last quarter of the current calendar year. “2021 was the year of the turnaround after the pandemic for home loans. Despite reversals from the second wave of the pandemic, the year has been a time of growth," it said. 

The average ticket size for home loans increased to 28.43 lakh in the first quarter of 2021 from 27.74 lakh in the previous quarter. This dropped in the second quarter with the outbreak of the second wave, however, from the third quarter onwards, the ticket sizes have picked up again, the report said. 

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