Loan: Compared to last year, this year there is a decline in the number of borrowers taking loans by pledging gold.

Recently, it has seen a decline after a sharp rise in the tendency of people struggling with financial problems to borrow money by pledging gold during the Corona period. This can be considered as a sign of recovery in the economy. According to RBI data, gold-secured personal loans declined by 2.9 per cent in May, while all other categories of personal loans improved.

According to the latest RBI data, banks disbursed Rs 73,752 crore against gold ornaments in May, compared to Rs 75,311 crore in the same month last year. It may be noted here that during the year 2020 and May 2021, loans against gold saw a sharp increase of up to 126 per cent respectively.

While home and vehicle loans, personal loans saw a growth of 14 per cent. Banks have sanctioned home loans worth Rs 17 lakh crore and auto loans worth Rs 4.2 lakh crore. On the other hand, credit allocation to micro and small enterprises continued to perform well during May, registering a sharp rise of 33 per cent, from 8.9 per cent a year ago. Credit disbursements to large enterprises grew by 1.9 per cent this time as compared to a contraction of 3.1 per cent in the same month last year.

Overall, non-food bank credit grew 12.6 per cent during May, from 4.9 per cent a year ago. Credit to the services sector grew 12.9 per cent this year.