Industry expert Nitin Aggarwal anticipates a significant rebound in unsecured loan demand during the second half (H2) of the year, which is expected to support the recovery of margins for financial institutions. Following a period of cautious lending and subdued consumer confidence, the market for unsecured credit is showing promising signs of revival as borrowers increase their appetite for non-collateralized credit products.

Aggarwal’s analysis points to an improving macroeconomic environment and rising consumer spending power as key drivers behind this demand resurgence. The growth in unsecured loans is projected to help lenders regain profitability by enhancing their margin profiles, which had been under pressure due to tight credit conditions in the earlier part of the year.

Investors and market watchers are closely monitoring these developments amid ongoing volatility and mixed performances across sectors. The rebound in unsecured lending is viewed as a positive signal, potentially leading to broader financial sector strength as economic activity picks up pace.

With the anticipated increase in credit uptake, financial firms are expected to benefit from improved revenue streams and a healthier credit cycle, reinforcing optimism about the sector’s prospects moving forward.