CRIF High Mark, a credit bureau, in a report on ‘How India Lends’ shared that the portfolio outstanding of consumption loans is at INR 78 lakh crore. The report breaks down the trends across different product segments on how the demand and outstanding lies.
Sanjeet Dawar, Managing Director, CRIF High Mark, said, “The third edition of the report, ‘How India Lends – FY2023’ presents insights into the current credit market bringing into focus the trends that have been shaping the lending ecosystem during the past year. The report states that Consumption loans have demonstrated robust growth across categories, with notable increases in Home Loans, Two-Wheeler Loans, and Auto Loans.”
Dawar added, “sIt also observes that Entity MSME lending experienced substantial percentage growth in originations by value, with the Micro Segment being the largest contributor. These trends, combined with an encouraging improvement in delinquencies, thus, reflect the resilience of the Indian economy.”
A look on Trends and Patterns Shaping Major Lending Product Categories in India.
Consumption Lending: The Portfolio outstanding of Consumption Loans stands at ₹78 Lakh Cr as of Jun’23
Home Loans:
- Shift in Originations (by value and volume) from ticket size ₹5L – ₹35L to ₹35L – ₹ 75L
- Growth of 22% in Average Ticket Size (ATS) from ₹20.2L in FY20 to ₹24.7L
Personal Loans:
- 150% growth in Originations by volume, where Banks dominate Originations by value and NBFCs by volume.
Two-wheeler loans:
- 36% growth in Originations by value
- 130% Growth in Originations share (by Value) and 220% Growth in Originations share (Volume) for 75K+
Auto Loans:
- Witnessed 63% growth in Originations (by Value)
- Shift in Originations (by value and volume) from ticket size <₹10L to ₹10L+ from FY22 onwards partially due to an increase in vehicle prices during the period
Consumer Durable Loans:
- 57% growth in Originations by value, and 51% growth by volume.
- While NBFCs dominate the category, there is Y-o-Y increase in Originations share for Private Banks
Credit Cards:
- 69% growth in new cards issued from FY20 to FY23 with growth in the share of Private Banks from FY22 onwards.
MSME Lending:
Individual MSME Loans
- The Portfolio outstanding of Individual MSME Loans stands at ₹28.5 Lakh Cr as of Jun’23 with a Y-o-Y growth of 13.5%
- ATS for Individual MSME increased from ₹5.8L from FY22 to ₹6.9L FY23
- Delinquency improved across all Individual MSME Loans except for PAR 181-360 for CEL from June’22 to June’23
Entity MSME Loans
- The Portfolio outstanding of Entity MSME Loans stands at ₹26 Lakh Cr as of Jun’23
- Entity MSME Loans dominated by Private Banks by value and Public Sector Banks by volume
- The sector witnessed the highest Originations Value in recent quarters, with the Micro Segment being the largest contribution
Microfinance Lending:
- The Portfolio outstanding of Microfinance Loans stands at ₹355.3 K Cr as of Jun’23. MFI Loans are dominated by NBFC MFIs (value and volume) followed by Banks.
- Originations by value witnessed an 18% growth from FY20 to FY23
- The sector witnessed an increase in ATS from ₹34.6K in FY20 to ₹41.1K in FY23
Corporate Lending (Only Entity):
- The Portfolio outstanding of Corporate Loans stands at ₹62.2 Lakh Cr as of Jun’23
- Originations by value witnessed a 33% growth from FY22 to FY23
