The lending industry has been evolving over years, with a significant shift towards the digital medium. While the fintech lending industry has gained significant traction, NBFC lending volumes still hold a larger pie.
Loan sanctions by NBFCs in urban areas shrunk by Rs 15,751 crore to Rs 3.85 lakh crore in the September quarter from about Rs 4 lakh crore in the June quarter. Compared to the same quarter in the previous year, the sanctions were up by 3 per cent.
According to latest data shared by CRIF and Finance Industry Development Council (FIDC), there has been a quarter-on-quarter spike in personal loan sanctions by NBFCs. Education loans and consumer loans have also witnessed a good growth while home loan sanctions by NBFCs remain flat.
Personal loans sanctioned by NBFCs in Q1 FY24 was Rs 59,151 crore as compared to Rs 64,778 crore in Q2 FY24. A quarter-on-quarter growth of 10 per cent was recorded while 32 per cent year-on-year growth was recorded. Personal loan sanctions witnessed a growth of a whopping 141 per cent in total over the last two years.
Consumer loans have shrunk by 12 per cent quarter-on-quarter but have grown 26 per cent year-on-year. Consumer loans sanctioned by NBFCs in Q1 FY24 was Rs 29,621 crore as compared to Rs 26,072 crore in Q2 FY24.
Education loans witnessed a whopping 164 per cent qoq growth with Rs 12,423 crore worth loans sanctioned in Q2 FY24 compared to Rs 4,700 crore worth education loans sanctioned in Q1 FY24. Overall, education loans witnessed 184 per cent growth in the last two years, highlighted the data.
Housing loans remained flat with a 1 per cent qoq growth and -2 per cent yoy growth. Housing loans sanctioned by NBFCs in Q1 FY24 was worth Rs 45,367 crore compared to Rs 45,871 in Q2 FY24. Gold loans on the other hand faced a quarter-on-quarter decline of about 30 per cent, despite a 9 per cent annual growth.
