Consumer financing in Bangladesh has slowed due to rising interest rates and economic uncertainty. People are cautious about taking loans, with banks also adopting a conservative approach to lending amid political instability. As of September, consumer credit accounted for 8.62% of total loans, down from 8.86% the previous year. The amount of consumer credit disbursed dropped significantly, from Tk 17,993 crore to Tk 9,103 crore. Inflationary pressures, reaching 11.38% in November, have further pushed up lending rates, discouraging borrowing. Despite the slowdown, middle- and upper-middle-income individuals, especially professionals, are still taking loans for necessities like education, medical treatment, and housing. However, sectors like housing and automobiles have been particularly affected by the economic climate.
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