The personal loan portfolio has doubled in value in the last 5 years


Bombay, September 1 (IANS): According to a report by CRIF High Mark, the personal loan portfolio in India has grown more than twice in terms of value during the period FY17-FY21.

Entitled ‘How India Lends, FY 2021’, the report said: ‘The overall personal loan portfolio grew 2.3x in value and 3.8x in volume from FY17 to FY21, while the same thing for Small Ticket personal loans is growth of 3 times in origins in value and 11.5x in volume “

Additionally, credit cards saw a 2.4-fold growth in new card creations from FY17 to FY20, followed by a decline of FY21.

According to the report, the total size of the loan market in India in March 2021 was Rs 156.9 lakh crore, which is 100% growth from FY17 to FY21. Over the past five years, retail, microcredit and trade credit portfolios have grown by 91%, 157% and 93%, respectively.

Retail and commercial loans each contribute 49% of total lending in India and microfinance contributes 2% of the overall loan pie.

Navin Chandani, Managing Director and CEO of CRIF High Mark, said: “Our report is an attempt to highlight credit trends in India from FY17 to FY21. Credit institutions and policymakers could benefit from the report and work together to promote a favorable lending environment. As credit development drives economic growth, we are committed to researching and publishing reports that will benefit the credit ecosystem. “

Microfinance loans dominated by banks and NBFC-MFIs experienced a growth of 2.1 times the number of originations in value from fiscal year 17 to fiscal year 20, followed by a decrease of 31% (in value ) in fiscal year 21.

The share of creations by note value over Rs 30,000 increased by 38% from FY17 to FY21.


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