Mumbai: Lending by NBFCs grew 1.8% year on year on the fourth quarter of FY24 reflecting a moderation that was induced by the Reserve Bank of India. In November 2023, RBI made bank lending to NBFCs more expensive by increasing risk weightage for some segments.
The segments were sanctions dropped from Q4 last year included equipment financing which was down 40%, gold loans (down 18%) and lease finance (down 48%).
According to data released by the Finance Industry Development Council and CRIF, loans sanctioned in Q4FY24 were up 2.6% quarter on quarter. However, this is not comparable because sanctions tend to peak in the fourth quarter and 2.6% QoQ growth was lower than earlier years.
“Several sectors in the consumer lending space such as education loans, consumer loans and gold loans showed negative growth QOQ perhaps reflecting the cautionary advice of the RBI. Even sectors like auto loans, two wheeler loans and personal loans showed slow down QOQ,” said FIDC director general Mahesh Thakkar in a note.
Year on year, however, the individual segments showed high growth. The sectors that saw the highest growth year on year were auto loans (36.3%), education loans (28.8%), property loans (18.4%), and unsecured business loans (16.9%).
The growth of loans against commercial vehicles and equipment, as well as medium and long-term loans primarily for commercial use, was slow year over year (YOY). On the other hand, housing loans and used car loans showed healthy YOY growth. Industrialized states such as Delhi, Gujarat, Haryana, Maharashtra, and Tamil Nadu experienced slow or negative loan growth.
