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Lending market witnesses 11% growth over Mar’ 21, says CRIF’s How India Lends FY 2022 Report
The report presents a trends analysis of key parameters such as portfolio growth, risk, and originations across lender types and ticket size bands over the last 5 financial years.
India, 28th September 2022: CRIF High Mark, a leading Indian credit bureau, today, launched the second edition of its How India Lends report. The FY 2022 report deep dives into Retail, Microfinance, and Commercial lending markets over the last five years (FY18 – FY 22) with an emphasis on key insights into the industry and consumer trends. Additionally, the report also weighs the impact of COVID-19 on the lending landscape.
Size of the total Lending Market in India
As stated in the report, the size of the total lending market in India as of March’22 stood at INR 174.3 lakh crores, which marks an 11.1% growth over March 21. As of March’22, Commercial, Retail, and Microfinance Lending portfolios have contributed 49.5%, 48.9%, and 1.6%, respectively. The report also notes that after facing unprecedented challenges in FY 21 due to the COVID pandemic and the deadly second wave in Q1 FY 22, the lending landscape in India witnessed a sharp recovery in the remaining part of FY 22.
Performance of major product categories from FY 21 to FY 22
Retail loans:
- Personal loans witnessed 46% growth in Originations by value, 122% growth in Originations by volume from FY 21 to FY 22, and the sector is dominated by PSBs, Private Banks, and NBFCs
- Credit Cards witnessed 48% growth in New Card Originations from FY 21 to FY 22 and the share of the New Card Originations of Private Banks increased from 61.2% in FY 21 to 71.4% in FY 22
- Two-wheeler loans witnessed 9.2% growth in Originations by value, and 2% growth in Originations by volume from FY 21 to FY 22, and the sector is dominated by NBFCs and private banks by volume and value.
- Auto loans recorded 23% growth in originations by value and 8.5% growth in Originations by volume from FY 21 to FY 22. Private Banks, PSBs, and NBFCs have a good presence in this sector.
- Home Loans witnessed 29% growth in Originations by value and 20% growth in Originations by volume from FY 21 to FY 22, and the sector is dominated by PSBs and HFCs
- Business loans observed a 10% growth in Originations by value from FY 21 to FY 22 and the sector is dominated by PSBs, Private Banks, and NBFCs
- Consumer Durable Loans witnessed 66% growth in Originations by value and 43% growth in Originations by volume from FY 21 to FY 22 and the sector is dominated by NBFCs
Microfinance loans:
- Microfinance loans witnessed 22% growth in Originations by value and 13% growth in Originations by volume from FY 21 to FY 22 and the sector is dominated by Banks and NBFC MFIs
Commercial loans:
- Commercial Loans witnessed 73% growth in Originations by value from FY 21 to FY 22 and are dominated by Private Banks and PSBs
Mr. Sanjeet Dawar, Managing Director, CRIF High Mark, said, “The second edition of our ‘How India lends’ report captures key insights into the Indian credit ecosystem and aims to empower lenders. India’s credit sector maintained an accelerated growth trajectory despite unprecedented challenges arising due to the second wave of COVID-19. The lending market in India stood at Rs.174.3 lakh crore, growing by 11.1% over last year. As a result, FY22 witnessed tremendous growth in new loan originations across Retail, Microfinance, and Commercial loans. This resurgence in the credit landscape signals economic recovery and is extremely encouraging”.
About CRIF High Mark: CRIF High Mark is one of the four RBI-authorized credit bureaus in India that provides personal and business scores. The company has one of the largest databases of individuals and businesses from over 4,000 financial institutions and provides credit information services and supports millions of lending decisions every month. It pioneered India’s first Microfinance Bureau database, which is now the world’s largest. CRIF High Mark is the first full-service credit bureau and covers all borrower segments – Commercial, Retail, and Microfinance.
CRIF High Mark is part of CRIF, a global company specializing in credit bureau and business information, outsourcing and processing services, and credit solutions. CRIF is ranked amongst the prestigious top 100 IDC Fintech Rankings.
Globally, CRIF operates in 50 countries with more than 10,500 financial institutions and 600 insurance companies. CRIF’s services are used by more than 82,000 companies and 1,000,000 consumers.
