Lenders Poised to Support Borrowers Amid West Asia Crisis

Amid the ongoing West Asia crisis, lenders are being called to support both retail and small businesses, a move reminiscent of their response during the Covid pandemic, said TransUnion Cibil. The company's MD and CEO, Bhavesh Jain, emphasized this need for handholding borrowers, including MSMEs, at such crucial times.

Jain highlighted the significance of a diligent approach by lenders, suggesting that loans should be extended only after careful consideration of past repayments and income levels. Although the portfolio quality held steady till February, complete data for March is still awaited. Notably, retail lending improved across most segments except micro-LAPs.

Gold loans have surged as a favored choice due to their safety, making them the second largest segment in retail lending. Prime borrowers are also more preferred, evidenced by an increase in lending to this group. Meanwhile, the retail sector continues to be dominated by home loans, although their growth too has slowed.