News Desk, News Nation 360 : Leading Indian credit bureau CRIF High Mark released the fourth edition of its famous report, How India Lends. For the last five years (FY20 to FY24), the research delves deeply into consumption lending, MSME lending, and microfinance lending with a focus on important insights into market developments and consumer behaviour. As of March 2024, India's Consumption Loans portfolio grew 15.2% YoY to ₹90.3 lakh crore, with growth deceleration mainly due to Home Loans slowing to 7.9% YoY. Home Loans saw a shift in originations to higher ticket sizes (₹35L+), with the average ticket size up 32% since FY20. Personal Loans grew robustly at 26% YoY, with ₹10L+ loans increasing in share; banks led in value and NBFCs in volume. Two-wheeler loans accelerated to 34% YoY, driven by higher ticket sizes (₹75K+), while Auto Loans slowed slightly to 20% YoY, influenced by a shift to ₹10L+ loans. Consumer Durable Loans grew 34% YoY, led by a shift to ₹25K+ loans, with private banks gaining share but NBFCs rebounding in FY24. Credit Cards grew 16.5% in active cards, with balances at ₹3.0 lakh crore. Individual MSME Loans outpaced Entity MSMEs in growth (28.9% vs. 6.6% YoY), with Individual MSME Loans accelerating to 29% YoY and improved delinquency rates. Microfinance Lending grew 27% YoY, with a portfolio of ₹442.7K crore and average ticket size up 11% from FY23 to FY24. Commenting on the report Sanjeet Dawar, Managing Director, CRIF High Mark, stated that the report "How India Lends - FY2024," in its fourth edition, offers a thorough summary of the changing lending environment in India. The study for this year emphasises how home loans are still the most popular type, while personal and two-wheeler loans have grown significantly. Additionally, they note a notable increase in the market share of NBFCs and a notable rise in the microfinance industry. The steadiness of delinquencies and the robustness of the various lending categories highlight the credit market's continued resilience and vitality in India.
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