The Credit Information Bureau (India) Ltd (CIBIL) has reported that banks and financial institutions have increased enquiries about credit profiles of prospective customers following the financial crisis and economic slowdown. It has also said that about 20 percent of these enquiries are related to auto loans.
On the matter, the Managing Director of CIBIL, Mr. Arun Thukral said, "More than 20 per cent of all enquiries made at CIBIL by credit institutions for assessing new loan applicants are for auto loans, with Delhi NCR contributing to over 34 per cent of all auto loan enquiries (made in bigger cities)."
He further added that post the financial crisis faced by the economy in the year 2008, lending institutions like banks have made their credit norms stricter and have decreased exposure to unsecured loans like credit cards and personal loans.
Thukral also said that banks have become very cautious in advancing home loans to borrowers with low credit rating.
The data put forward also shows that disbursement of auto loans in small cities have increased in the last few years.