India Lends Introduction
In the latest "How India Lends" Report series, we delve into India's dynamic lending landscape. With a population surpassing 1.3 billion, India stands among the world's largest and most intricate lending markets. The rising incomes and changing consumption patterns fuel a growing demand for retail lending, with notable activity observed in microfinance and commercial loan segments.
Our objective is to provide insights into the overarching development of the credit ecosystem in India. Navigating through complexities, we utilize advanced analytics and expertise to comprehend key shifts across product categories and geographies. This platform serves as a valuable resource for lenders and policymakers, offering a profound understanding of the evolving credit landscape.
Key Trend
A Spotlight on Key Lending Trends
A comprehensive overview of lending markets and categories in the Indian lending landscape.
₹ 198.3 L Cr
Total size of Lending Market in India
₹ 78 L Cr
Consumption Loans
₹ 62.2 L Cr
Corporate Loans
₹ 54.5 L Cr
MSME Loans
₹ 3.6 L Cr
Microfinance Loans
*Data in ₹Lakh Crore
Key Observations From the Report
The latest edition of the 'How India Lends' report, an annual publication by CRIF High Mark, extensively examines the consumer lending market in India over the past five years (FY2020 to FY2023). The FY2023 report places a significant focus on extracting crucial insights into industry dynamics and consumer trends. Here, we present some key highlights gleaned from this comprehensive report:
Home Loans: Home Loans dominate the market portfolio in Consumption Loans. Public Sector Banks and Private Banks are likely to continue dominating the home loan market, with a noticeable shift towards originating larger loans in the ₹35L-₹75L ticket size range, signaling a trend toward substantial home financing.
Personal Loans: Fintech-led growth in small ticket and short-term loans may continue, with NBFC Fintech's playing a significant role in the market. The increase in originations share for ticket sizes <₹25K suggests a rising demand for smaller personal loans.
Two-Wheeler Loans: The dominance of NBFCs in both value and volume indicates a strong presence in the two-wheeler loan market. The shift in originations towards ₹75K+ ticket size bands may imply an increasing demand for higher-value two-wheeler loans.
Consumer Durable Loans: The continuous year-on-year increase in origination shares for private banks in consumer durable loans suggests a growing role for private banks in this market.
Credit Card Trends: Private banks are likely to maintain their dominance in credit cards both in terms of value and volume. The 69% growth in new cards issued suggests a significant expansion in the issuance of credit or payment cards.
MSME Loans: In MSME loans, Entity MSMEs experienced a 13.9% Y-o-Y portfolio growth to ₹26 lakh crore, and Individual MSMEs saw a 13.5% Y-o-Y growth, reaching ₹28.5 lakh crore. Private banks are likely to lead in the value of entity MSME loans, while public sector banks may lead in terms of volume.
Microfinance Loans: Microfinance loans witnessed robust Y-o-Y portfolio growth of 27.8%, with a huge improvement in delinquency. The growth in average ticket size may indicate an increasing demand for larger microfinance loans.
Download the How India Lends report today for a comprehensive analysis of the Indian consumer lending market from FY2020 to FY2023. Gain valuable insights into industry dynamics and consumer trends.
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Report Content
- Definitions
- Executive Summary
- Introduction to Indian Credit Landscape
- Consumption Lending
- Credit Cards
- MSME Loans
- Microfinance Lending
- About How India Lends
- About CRIF High Mark
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