Home loan sanctions by non-banking finance companies (NBFCs) dropped 2 two percent Y-o-Y in Q3 FY24 to Rs 47,199 crore during the third quarter ending December 2023 (Q3 FY24) from Rs 48,122 crore in Q3 FY23. Sequentially, the contraction was more pronounced, with a 13 percent decline over Q2 FY24.
NBFCs, meanwhile, witnessed a notable increase of six percent year-on-year (Y-o-Y) in loans sanctioned during Q3 FY24. This growth was primarily driven by consumption, gold, and personal loan segments during the festive season. However, sequentially, loans experienced a four percent decline over the second quarter ending September 2023 (Q2 FY24).
According to data from the Finance Industry Development Council (FIDC), consumer loan sanctions surged by an impressive 30 percent Y-o-Y in Q3 FY24.
| The total consumer loans sanctioned amounted to approximately Rs 29,813 crore, marking a substantial increase from Rs 22,950 crore in Q3 FY23. Sequentially, sanctions grew by 14 percent over Q2 FY24. |
Gold loans shine
Gold loans also demonstrated significant growth, with a 14 percent Y-o-Y increase in sanctions during Q3 FY24. Sanctions amounted to Rs 44,743 crore in Q3 FY24, compared to Rs 39,305 crore in Q3 FY23. Sequentially, gold loan sanctions expanded by eight percent over Q2FY24.
Meanwhile, the personal loan segment recorded a robust growth of 27 percent Y-o-Y in Q3FY24. Total sanctions in this category reached Rs 67,722 crore in Q3 FY24, compared to Rs 53,293 crore in Q3 FY23. However, sequentially, sanctions remained relatively flat with just one percent growth over Q2 FY24.
A potential revival of capital expenditure was indicated by increasing loans in categories such as commercial vehicles and equipment, as well as loans against property (LAP). Commercial vehicle loans showed a 17 percent Y-o-Y growth in sanctions in Q3 FY24, while LAP loans grew by 23 percent Y-o-Y. Sequentially, commercial vehicle loans experienced a one percent growth over Q2 FY24, while LAP loans expanded by six percent.
The FIDC reported a two percent Y-o-Y growth in urban sanctions, contrasting with a 14 percent Y-o-Y growth in rural sanctions.
