Business: Rapid recovery for India’s lending market

After the most challenging pandemic-driven downturn, India’s lending market has seen a sharp recovery. The latest data compiled by leading credit bureau CRIF High Mark reveals that the size of the total lending market in the country stood at Rs 174.3 lakh crore as of March 2022. This marks an 11.1% growth over March 2021, reflecting a rapid stride in the economy at least in the retail level.

While commercial and retail lending contributed the most to the growth at 49.5 per cent and 48.9 per cent, respectively, the microfinance lending portfolio of lenders, though witnessed double digit growth, is yet to see the same momentum as its contribution remained at 1.6 per cent to the overall market.

The CRIF High Mark report, titled ‘How India Lends’, consists of Indian lending data from 2018 to 2022. Weighing the impact of Covid-19 on the lending landscape of India, the report also deep-dived into the lending industry and consumer trends.

“India’s credit sector maintained an accelerated growth trajectory despite unprecedented challenges arising due to the second wave of Covid,” said Sanjeet Dawar, CRIF High Mark’s managing director.

Dawar noted that, as a result, the financial year 2022 witnessed tremendous growth in new loan originations across retail, microfinance, and commercial loans. He said, “This resurgence in the credit landscape signals economic recovery and is extremely encouraging.”

Lenders’ Show FY21 to FY22 (in value)

Personal loans up 46%

Credit Cards up 48%

Two-wheeler loans up 9.2%

Auto loans up 23%

Home loans up 29%

Business loans up 10%

Consumer Durable loans up 66%

Microfinance loans up 22%

Commercial loans up 73%

Published on: Tuesday, September 20, 2022, 11:39 PM IST