Lending market witnesses 11 per cent growth over March 21

CRIF High Mark

CRIF High Mark, a leading Indian credit bureau, today, launched the second edition of its How India Lends report. The FY 2022 report deep dives into Retail, Microfinance, and Commercial lending markets over the last five years (FY18 – FY 22) with an emphasis on key insights into the industry and consumer trends. Additionally, the report also weighs the impact of COVID-19 on the lending landscape.

Size of the total lending market in India

As stated in the report, the size of the total lending market in India as of March’22 stood at INR 174.3 lakh crores, which marks an 11.1 per cent growth over March 21. As of March’22, Commercial, Retail, and Microfinance Lending portfolios have contributed 49.5 per cent, 48.9 per cent, and 1.6 per cent, respectively. The report also notes that after facing unprecedented challenges in FY 21 due to the COVID pandemic and the deadly second wave in Q1 FY 22, the lending landscape in India witnessed a sharp recovery in the remaining part of FY 22.

Performance of major product categories from FY 21 to FY 22

Retail loans:

Personal loans witnessed 46 per cent growth in Originations by value, 122 per cent growth in Originations by volume from FY 21 to FY 22, and the sector is dominated by PSBs, Private Banks, and NBFCs.

Credit Cards witnessed 48 per cent growth in New Card Originations from FY 21 to FY 22 and the share of the New Card Originations of Private Banks increased from 61.2 per cent in FY 21 to 71.4 per cent in FY22.

Two-wheeler loans witnessed 9.2 per cent growth in Originations by value, and 2 per cent growth in Originations by volume from FY 21 to FY 22, and the sector is dominated by NBFCs and private banks by volume and value.

Auto loans recorded 23 per cent growth in originations by value and 8.5 per cent growth in originations by volume from FY 21 to FY 22. Private Banks, PSBs, and NBFCs have a good presence in this sector.

Home Loans witnessed 29 per cent growth in originations by value and 20 per cent growth in originations by volume from FY 21 to FY 22, and the sector is dominated by PSBs and HFCs.

Business loans observed a 10 per cent growth in originations by value from FY 21 to FY 22 and the sector is dominated by PSBs, Private Banks, and NBFCs.

Consumer Durable Loans witnessed 66 per cent growth in Originations by value and 43 per cent growth in Originations by volume from FY 21 to FY 22 and the sector is dominated by NBFCs

Microfinance loans:

Microfinance loans witnessed 22 per cent growth in Originations by value and 13 per cent growth in Originations by volume from FY 21 to FY 22 and the sector is dominated by Banks and NBFC MFIs

Commercial loans:

Commercial Loans witnessed 73 per cent growth in originations by value from FY 21 to FY 22 and are dominated by Private Banks and PSBs

Sanjeet Dawar, Managing Director, CRIF High Mark, said, “The second edition of our ‘How India lends’ report captures key insights into the Indian credit ecosystem and aims to empower lenders. India’s credit sector maintained an accelerated growth trajectory despite unprecedented challenges arising due to the second wave of COVID-19. The lending market in India stood at Rs.174.3 lakh crore, growing by 11.1 per cent over last year. As a result, FY22 witnessed tremendous growth in new loan originations across retail, microfinance, and commercial loans. This resurgence in the credit landscape signals economic recovery and is extremely encouraging”.

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