India’s Loan Growth Slows in 2025

What does this mean for borrowers?

🔹 Why Is Loan Growth Slowing?

– Higher Interest Rates 📈 – Stricter Lending Norms 🚦 – Reduced Consumer Spending 💰 – Weak Business Sentiment 🏢

Impact on Home Loans

Lower demand may reduce interest rates. But banks are tightening loan eligibility.

Impact on Auto Loans

Discounts possible due to slow demand.  Tougher loan approvals for low credit scores.

Impact on Personal Loans

Banks are more cautious about unsecured loans. Low credit scores may lead to rejection.

How Businesses & MSMEs Are Affected

Higher loan costs slow expansion. Large firms still access funding. MSMEs struggle with stricter lending rules.

What Borrowers Should Do Next

Compare lenders for the best rates.  Maintain a high credit score.  Prepay high-interest loans.  Wait for possible rate cuts before borrowing.