Consumer loans hit a record in Q1 amid steep rise in electronic goods prices

Kolkata: Consumer financing scaled a new high in the June quarter, boosting its contribution to total retail sales, as consumers increasingly availed of loans to absorb steep price hikes and navigate economic uncertainty, showed data from the Reserve Bank of India (RBI), market researchers and companies.

The surge was fuelled by greater financing of consumer electronics such as smartphones, televisions, laptops, and air-conditioners, where companies raised prices 12-40% over the past six months. This was done to offset sharp increases in memory chip prices besides higher commodity costs, triggered by the West Asia crisis.