Job uncertainty makes people shy away from loans in India

People in India are increasingly shying away from taking bank loans on account of economic slowdown and scepticism arising out of job uncertainty, a survey by industry body Assocham said. "In the wake of slowdown, while industrial growth and services are getting impacted, job uncertainty among the young spenders is working as a big dampener," the survey said. Individual borrowers are adopting an extremely conservative approach when it comes to taking loans from banks against fixed deposits or shares and bonds. According to the banking data, loans against fixed deposits have declined by 1.6 per cent in the current fiscal as against a growth of 20 per cent between August 2012 and August 2013. 

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