Personal loan growth slows to 13.8% in H1FY25, long-term delinquencies rise: CRIF

India's personal loan market slows, with 13.8 per cent YoY growth in H1 of FY25. NBFCs dominate with 68.7 per cent share of active loans, while public sector banks hold 37.8 per cent of portfolio outstanding. Loan origination value dips 5.5 per cent, but volume rises 3.4 per cent to 691.5 lakh loans, amid rising delinquencies across all geographies.

India’s lending market experienced a slowdown, with Year-on-Year (YoY) growth in personal loans declining to 13.8 per cent in September 2024 from 29.1 per cent in September 2023, according to a report by credit bureau CRIF.

Market Share Distribution

Public sector banks held the largest share of the portfolio outstanding as of September 2024, accounting for 37.8 per cent, followed by private banks with 32.9 per cent and non-banking financial companies (NBFCs) with 24.1 per cent. However, in terms of the number of active loans, NBFCs dominated the market with a significant 68.7 per cent share, while public sector lenders contributed 14.3 per cent and private banks 13.2 per cent.

Source: ETBFSI, 21st January, Mumbai