During the festive season from October to December, personal loan origination volumes surged by 22.3% year-on-year (y-o-y), defying the Reserve Bank of India’s (RBI) raised risk weight on unsecured consumer credit. A report by CRIF High Mark revealed that the total loan origination value rose by 13% y-o-y to Rs 2.3 trillion as of December 31. The trend during this period showed a shift towards smaller-ticket loans, with average loan sizes decreasing by 8% y-o-y to Rs 68,400 in the December quarter.
PSBs dominant
Public sector banks remained dominant in loan origination value, holding a market share of 37.4%, while non-banking financial companies (NBFCs) led in terms of volume with a market share of nearly 71%.
Auto loan origination value increased by 9% to Rs 88,600 crore as of December 31, with the average ticket size rising to Rs 8.1 lakh in the December quarter from Rs 7.3 lakh a year ago.
Two-wheeler loan originations saw a 21% y-o-y increase to Rs 30,400 crore as of December 31, with the highest growth in rural areas at 25%, followed by semi-urban areas at 21%, and urban areas at 14%. The average ticket size for two-wheeler loans rose by 7.2% y-o-y to Rs 89,000 in the December quarter.
Consumer durable loan origination value surged by 27.1% y-o-y to Rs 39,900 crore, driven by customers aligning their purchases of electronic goods and home appliances with festive season discounts.
Home loan origination value also grew, rising by nearly 9% y-o-y to Rs 2.5 trillion as of December 31.
The report emphasised that the top 10 states contributed to 72% of overall originations (value) in the December quarter, with Maharashtra leading in auto loans, personal loans, consumer durable loans, and home loans, while Uttar Pradesh led in two-wheeler loans.
