Two-wheeler loans go scarce

Banks are going slow on lending for purchase of two-wheelers. Such lending has seen a decline of more than 15 per cent over the past year, said officials from banks which are active in this segment. According to them, high rate of delinquency among customers and the recent norms on appointment of recovery agents have forced banks to go slow in the two-wheeler segment. Centurion Bank, which is a major player, has reduced lending for two-wheelers by almost 50 per cent during 2007-08. Bankers say tighter recovery norms have given customers more scope for avoiding payments. ICICI Bank, the largest player in the segment, said it has stopped lending for two-wheelers in more than 100 locations. Another reason for the slowdown is the higher cost of living.