{"id":6249,"date":"2017-03-10T08:44:00","date_gmt":"2017-03-10T08:44:00","guid":{"rendered":"\/blog\/?p=6249"},"modified":"2025-01-29T15:19:28","modified_gmt":"2025-01-29T09:49:28","slug":"demonetisation-and-personal-loans-what-is-the-equation","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/personal-use-loan\/demonetisation-and-personal-loans-what-is-the-equation\/","title":{"rendered":"Demonetisation and Personal Loans: What is the Equation?"},"content":{"rendered":"\n

The\ndemonetisation drive left many Indians in a serious cash crunch. The overnight ban\non high-currency notes took away most people\u2019s purchasing power. Some struggled\nto buy groceries and vegetables, while others found it difficult to pay for\nweddings and international holidays. Banks conducted below-average business as\npeople became hesitant to take loans. Those who already had loans faced a\ndifferent problem. The lack of cash caused problems not just when it came to\nspending, but also while making EMI payments. All this took a serious toll on\nthe financial market. This article talks about how the demonetisation drive\naffected the personal loan segment. <\/p>\n\n\n\n

Understanding a Personal Loan <\/strong><\/p>\n\n\n\n

A\npersonal loan is an unsecured loan that involves quick disbursal. It is an\nideal choice when you need to address a financial emergency. You could also avail\nit if you need some extra cash for another purpose. People usually opt for personal\nloans when dealing with medical emergencies and weddings. However, these loans are\nalso a suitable financial option for funding vacations, expensive gadgets, or home\nrenovations. <\/p>\n\n\n\n

Impact of Demonetisation on Personal Loans <\/strong><\/p>\n\n\n\n

Sudha\nSharma works as a plastic surgeon\u2019s assistant. \u201dMany people come to us for\ncorrective facial surgeries, hair transplants, and other cosmetic treatments.\nSince these treatments are quite expensive, people usually apply for personal\nloans. However, we saw a major slump in our business over the last few months,\u201d\nshe said. Sudha blames demonetisation for the slump. After all, people have had\nto cut down on their expenses. The cash crunch forced many people to postpone\nor cancel pre-planned expenses. This includes cosmetic treatments, vacations,\nand even family celebrations. Under normal conditions, people would have turned\nto personal loans for financial support. But they often postponed their plans\nto take loans as well. So, lenders saw a drop in the demand for these loans. <\/p>\n\n\n\n

Drop in Expenses<\/strong><\/p>\n\n\n\n

The\nworst effects of demonetisation were visible during the end of 2016 and the beginning\nof 2017. While things are slowly improving now, there are some people who are still\nrecovering from the shock. Most of them are being rather cautious with their\nmoney. All this led to a drop in how people were spending their money. Many put\noff plans to spend on small and large purchases, which added to a lower demand of\npersonal loans. <\/p>\n\n\n\n

Impact on the Personal Loan Interest Rates<\/strong><\/p>\n\n\n\n

However, demonetisation has been a blessing in disguise for those looking for a personal loan. Many banks and NBFCs are putting some life back into the business. They have started to offer personal loans at lower rates of interest. This makes it a good time to take a personal loan to fulfill any financial requirements. Perhaps you need to buy expensive camera equipment, or you want to sign up for a diploma course. If you do not have the money to fund these plans, you can apply for a personal loan during this market slump. <\/p>\n\n\n\n

The Bottom Line<\/strong> <\/p>\n\n\n\n

Demonetisation has had a big impact on the personal loan segment. Despite the fall in the demand for these loans, borrowers are seeing the cut in interest rates as a positive sign. In some cases, it has made personal loans more attractive to potential consumers who are in dire need of quick, easy-to-access funds. So if you need a personal loan<\/a> to help you meet any of your requirements, this is the best time to get one.<\/p>\n\n\n\n

Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The demonetisation drive left many Indians in a serious cash crunch. The overnight ban on high-currency notes took away most people\u2019s purchasing power.<\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":6250,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-6249","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-use-loan"],"yoast_head":"\nDemonetisation and Personal Loans: What is the Equation? - TATA Capital Blog<\/title>\n<meta name=\"description\" content=\"Demonetisation caused a cash crunch, reducing personal loan demand. 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