Among others, this reflects caution among lenders although two-wheeler loans are an exception. First time borrowers for two-wheeler purchases account for nearly half -49.2%- of these loans disbursed during 2024-25 compared to 49.1 % in the previous year.
The credit bureau classifies customers with inadequate credit history as “New to Credit’. Rising asset quality concerns have made bankers very cautious while extending loans. Experts say that besides lack of knowledge about an individual’s borrowing history, many do not meet income criteria.
Besides, the employment of records of many potential borrowers are also questionable as they do not have a stable job history. Some loans are rejected because of lack of correct documents or even multiple loan applications.
