faster growth in Retail loan demand
Consumer Loan is growing at a very high rate. People these days are preferring consumer loans. Growth in consumer loans is moving from metros and large cities to non-urban areas with over 70% disbursals taking place outside tier-1 cities. The searches outside cities are growing 2.5 times faster as compared to cities for the loan as shown by the online trend.
Searches for Retail loan grew the most in tier-3 cities at 47%, followed by tier-2 (32%) and tier-4 (28%) According to the study by Google and TransUnion Cibil. The retail credit industry of India stood at $613 billion (Rs 44 lakh crore), which reflects an 18% compounded annual growth rate (CAGR) since 2017. Also, the home loans at $290 billion (Rs 21 lakh crore) form the largest chunk, loan against property and business loans are growing at a fast rate.
small loans which are driving up volumes with the help of digital lending. Retail loan of below Rs 25,000 have grown 23 times since 2017. 38% of loans disbursed to the ‘prime’ credit tier was through fintech NBFCs (non-banking financial companies) according to the reports of TU cibil in 2020. “Consumer credit demand and access have undergone a paradigm shift over the last few years, with the post-pandemic circumstances having further accelerated this change.” said TU Cibil MD & CEO Rajesh Kumar.
