The public sector lenders saw the biggest rebound in inquiries in July and August 2020, most likely because they were early in recommencing operations than their Private and finance
counterparts. The lockdown, imposed to contain the spread of Covid-19, did impact consumers’ ability to apply for credit as lender branch offices functioned with very limited capacity. The economic uncertainty caused lenders and consumers to take a cautious approach to borrow.
However, this also resulted in a level of pent-up demand, which has now started to come through, CIBIL said in a statement.
Although not back to the pre-Covid levels seen in January and February 2020, inquiry volumes have started to recover from their troughs in April and May 2020, and in July and August, 2020 were similar to levels seen during the same period in 2018.
The uptick in home loan enquiries could possibly be due to lenders completing the pending transactions that had been halted at the onset of Covid-19. Another factor at work may be consumers seeking to transfer existing home loans to lenders offering better interest rates consequent to rate cuts announced by the regulator.
The increased inquiry volumes for auto loans for July and August 2020 could be attributed to consumers seeking vehicles due to the limited availability and rising fear of commuting via public transport.
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