April 2022
April 2022
CRIF High Mark launched its inaugural report titled How India Celebrates – Report on Festive Lending in India. The report highlights overall trends and movement across key consumer lending products i.e., Personal, Home, Consumer Durable, Two-Wheeler, and Auto loans during the festive season - Q3 every year (October – December), from FY19 – FY22. The report deep dives into originations by value and volume across each product, lender type, geography along with early delinquency trends.
Personal loans and Home loans outshine across all 4 financial years
Personal loans outshined all other products by witnessing nearly 2X growth in originations (value) during festive season from Rs 75,088 crore in FY 19 to Rs 147,236 crore in FY22, and 4X growth in originations (volume) from 39.9 lakh accounts in FY19 to 158.1 lakh accounts in FY22. Home loans witnessed 40% growth in originations (value) during festive season from Rs 138,544 crore in FY19 to Rs 193,227 crore in FY22, and 21% growth in originations (volume) from 6.7 lakh accounts in FY19 to 8.1 lakh accounts in FY22. Key trend to note is that share of Q3 in originations (value) increased from FY19 to FY21 for all products.
Performance of major loan products
Below are the key trends observed during festive season (Q3 – October to December, from FY19 – FY22) across major consumer lending products – Personal, Home, Consumer Durable, Two-Wheeler and Auto loans -
South and West India dominate in originations
According to the report, South and West India dominate in originations. Among the top 10 states, originations (value) is highest in Maharashtra for Auto, Personal, Consumer Durable and Home loans, and Uttar Pradesh for Two-Wheeler loans. Among the top 15 districts, most are from southern and western parts of the country, with Jaipur, NCR and Kolkata being the exceptions. Originations (value) is the highest in Bengaluru across all products, with Home loans and Personal loans dominating, followed by Auto loans and Consumer Durable loans.
Mr. Navin Chandani, MD & CEO, CRIF High Mark, said, “Our inaugural report, How India Celebrates – Report on Festive Lending in India, was developed to capture the key trends and movements for major consumer lending products. Our data from FY19 – FY22 shows that lending sector is boosted by significant demand across major consumer products during the festive season; it continues to be the most preferred period to make important, high-value purchases. We are certain that our insights will aid all key players in the consumer sector (companies, manufactures and lenders) to leverage the strong consumer demand during the festive season in an improved manner, and build a collaborative ecosystem, that will boost the lending community at large.”
How India Celebrates – Report on Festive Lending in India is an inaugural report from CRIF High Mark on festive season lending in India. The report analyses trends and movements for major consumer lending products: Personal, Home, Consumer Durable, Two-Wheeler, and Auto loans during festive season compared to the rest of the year. For the purpose of this report, festive season in India is defined as the third quarter of the financial year (October - December).