Meanwhile personal loans should be avoided at any cost. This category of loans is already mounting between 25% and 40% and sometimes even more. Above there are no hopes that banks would ease credit under this segment as defaults continue to increase despite of banks adopting stricter due diligence of the customer.

Even though government and RBI look desperate to boost the credit flow, banks are still hesitant in lending. They are likely to be more cautious in the coming year and hence customers should also vigilant in their moves. The best idea would be to preserve first and spend later but if one cannot postpone his purchase then it is advisable to go in for floating interest rates and take the advantage of falling interest rates.

However if you plan to buy six months later then it is suggested to opt for fixed interest rate because rates might turn around in next two to three years.