Personal and Vehicle Loan Demand Increases by 12 Percent During Festive Season

Personal and Vehicle Loan Demand Increases by 12 Percent During Festive Season

A report by Teamlease Services reveals that the demand for personal and vehicle loans, including both two-wheelers and four-wheelers, has risen by 12 percent in the last four months. This surge aligns with the beginning of the festive season in India, prompting the Banking Financial Services and Insurance (BFSI) sector to prepare for increased customer engagement and transactions.

The report underscores that financial institutions are focusing on enhancing their workforce to provide efficient customer service and improve digital banking capabilities during this high-activity period. With the festive season encouraging consumer spending, lenders are anticipating a significant rise in loan applications.

Furthermore, the BFSI sector is seeing a substantial increase in job opportunities, particularly in retail lending, microfinance institutions (MFI), and payment services. The festive shopping season, which started with Ganesh Chaturthi in September and will continue through November, is a primary factor driving this demand.

The report forecasts that job openings in the retail lending and MFI sectors could increase from 12,000 to 19,000 between July and November 2024. This trend reflects the sector's proactive response to the growing consumer interest in loans during the festive period, signaling a positive outlook for the economy.

As financial institutions prepare for this busy season, industry stakeholders are optimistic about the potential for enhanced lending activity and the corresponding job growth within the BFSI sector.