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Retail loans portfolio increased by 91% between FY 17 and FY21, reaching Rs 77.7 lakh crores in March 2021, said CRIF High Mark, one of India’s leading credit bureau, in its report on retail, microfinance, and commercial lending in India over the last five years (FY17 – FY 21).
“Our report, How India Lends – FY21, is an attempt to highlight the credit trends in India, from FY17 to FY21. Lending Institutions and the policymakers could benefit from the report and collaborate to promote a favorable lending environment. As the development of credit spurs economic growth, we are committed to study and publish reports that will benefit the lending ecosystem,” said Navin Chandani, MD & CEO, CRIF High Mark.
Personal loans
The overall portfolio grew 31.1 % year over year in March 2020 and 20.2 % year over year in March 2021. With a share of 43 % and 37.4 %, respectively, public sector banks and private banks dominate overall personal loans (by value). As of March 2021, NBFCs dominated small ticket personal loans, accounting for 48.8 % (by value) and 65.7 % (by volume).
Credit cards
As of March 2021, credit cards had total balances of Rs 173.9 thousand crores and 608.89 lakh cards in circulation, representing an 11.6 % year-over-year increase in value and a 13.5 % year-over-year increase in volume. Private banks dominate the credit card market in terms of both value and volume. Due to lockdown throughout the country, new cards issued in Q1 FY2021 decreased by 80 % QoQ. In FY 2021, 54% of new credit cards were granted to borrowers under the age of 35.
Two-wheeler loans
As of March 2021, two-wheeler loans had a portfolio outstanding of Rs 77,900 crores, growing at a rate of 10.6 % by value and 6.3 % by volume. By value and volume, NBFCs and private banks dominate these loans. Between FY 2017 and FY 2021, the average ticket size increased by 23%.
NBFCs led two-wheeler originations by volume and value during the same time. In comparison to NBFCs, private banks have a larger average ticket size. In FY 2021, 61.3 % of two-wheeler borrowers are under the age of 35. In FY 2021, 64.5 % of two-wheeler loans were made to new-to-credit (NTC) borrowers.
Auto loans
As of March 2021, auto loans had a portfolio outstanding of Rs 4.34 lakh crore, representing a % year-over-year gain in value. All lender groupings, including private banks, public sector banks, and non-bank financial companies, have a strong presence in the auto loans area. Between FY 2017 and FY 2021, the average ticket size grew by 17%. Borrowers aged 36-50 years held the highest portion of the loan pie in FY 2021, accounting for 41% of originations (by value). In FY 2021, 28.4 % of vehicle loans were made to new-to-credit (NTC) borrowers.
Home loans
The whole portfolio grew by 8.8 % year over year in March 2020 and 12.1 % year over year in March 2021. Affordable Home Loans (home loans with a ticket size of 35L) are a significant segment of the home loan industry, accounting for 58 % volume and 85 % value in March 2021.
By value and volume, public sector banks and HFCs dominate the overall house loan market and the affordable home loan market. The average ticket size for home loans increased by 16% between FY 2017 and FY2021, from Rs 24.6 Lakhs to Rs 28.5 Lakhs. Borrowers aged 36-50 years led this loan sector in FY 2021, accounting for 48.6 % of originations (by value).