The growth in consumer durables loans by 55 per cent during 2008-09 may not necessarily suggest that there is a rapidly growing market for consumer durables or that consumer spending has picked up, as the performance of the sector worsened during April-June 2014 compared with the corresponding period last year, as per the latest available official data for factory production.
Output of consumer durable goods declined by 9.6 per cent compared with that of the corresponding period last year.
Growth in loans suggests that more consumers are borrowing for purchases of durables rather than buying cash down.
Loans as advances against share and bond, have gone from minus 45 per cent contraction in 2008-09 to a 22.5 per cent jump rate as on June 2014.
Latest data from the Reserve Bank of India on borrowing trends for individuals and households, that while educational loans have dipped sharply, loans for consumer durables and against stock market instruments have rise dramatically.
