Big rise in loan offtake during festival season, but home lags: CRIF High Mark

• Follow

A leading Indian credit bureau, CRIF High Mark, released the second edition of its How India Celebrates Report on Festive Lending in India. The report for the festive quarter of third quarter of FY23 (Oct-Dec) delves deeply into the overall trends. It provides insights into the consumer loan categories, including auto, two-wheeler, personal, consumer durable, and home loans.

The report details loans by value and volume for every product, lender type, and geographic region.

Key trends noted by the report:

Below are the main trends observed during the last three festive seasons (Q3 of FY21, FY22, FY23) across the five most popular consumer lending products – Auto Loans, Two-Wheeler Loans, Personal Loans, Consumer Durable Loans, and Home Loans – in India.

Auto loans During the festive season, Auto Loan originations (value) increased by 24%, from Rs. 60.9k crore in Q3 FY22 to Rs. 75.5 k crore in Q3 FY23. Q3 FY23 originations (value) were dominated by public sector banks and NBFCs in terms of volume.

Two – Wheeler Loans During the festive season, two-wheeler loan originations increased by 34.5%, from Rs. 17.1k crore in Q3 FY22 to Rs 23k crore in Q3 FY23. The rural, semi-urban, and urban regions contributed equally to the growth of two-wheeler loans.

Personal loans During the festival season, personal loans increased by 20.2%, and number increased by 24.0% from Q3 FY22 to Q3 FY23.

Consumer durable loans Volume of consumer durable loans increased by 12% during the festive season from Q3 FY22 to Q3 FY23. During the festive seasons of Q3 FY21, Q3 FY22, and Q3 FY23, private banks’ share of loans (both in value and volume) has increased.

Home loans Home loans saw a 5.5% increase in loans >Rs 35L during from Q3FY22 to Q3 FY23. Public sector banks dominated  this category, both in terms of value and viloume during FY21, FY22, and FY23.

Commenting on the findings of the report, Mr. Sanjeet Dawar, Managing Director, CRIF High Mark, said, “Historically, the festive season has witnessed numerous attractive offers from lenders across sectors to drive purchases, with credit being a major enabler for customers to make the most of these offers. We are confident that this consistent growth in the credit appetite of borrowers during the festive season will continue to play a crucial role in driving credit demand.”

CRIF High Mark is one of the four credit bureaus authorised by the RBI to provide India’s personal and business credit scores.