In the October-December 2021 period, loans across several categories, especially home loans, saw a marked increase. NBFCs saw the most volume but the least value, according to a CRIF High Mark report
Thanks to easy availability of home loans, there was 40 per cent growth in home loan originations (value) during the December quarter from FY19 to FY22, according to a research report by credit bureau CRIF High Mark. The report analysed major consumer lending products—auto loans, two-wheeler loans, personal loans, consumer durable loans and home loans—in the quarter ended December 2021.
According to the report, there was an increase in originations share (value and volume) of private banks during the quarter from FY19 to FY22. However, the share of public sector banks and home finance companies (HFCs) reduced during the same period. In the December quarter, public sector banks held the sway with 43.8 per cent in loans by value. Private banks had 36.6 per cent share; non-banking finance companies (NBFCs) had the least share at 19.6 per cent. But by volume, NBFCs led with 68.1 per cent; private banks had a share of 23.2 per cent and public sector banks the least at 8.8 per cent.
There was 40 per cent growth in originations (value) in home loan category during the quarter, from Rs 1,38,544 crore in FY19 to Rs 1,93,227 crore in FY22. There was 21 per cent growth in loan volume, from 6,70,000 accounts in FY19 to 8,10,000 accounts in FY22. Expectedly, the value of the loans was low in the rest of FY21 compared to rest of FY20 due to Covid.
In terms of expected developments, the first two quarters of FY22 saw originations worth Rs 2,86,226 crore, compared to the higher Rs 4,23,129 crore in three quarters of FY20 (Q1, Q2 and Q4). Should this trend continue, originations in the rest of FY22 could reach or surpass that of pre-pandemic levels of rest of FY20.
In the home loan category, in FY22, Maharashtra saw the most loans at Rs 43,151 crore, followed by Karnataka at Rs 19,550 crore in loans and Gujarat at Rs 15, 476 crore. The second-most successful category in the loan market was personal loans, with borrowers in Maharashtra clocking Rs 17,785 crore and Uttar Pradesh at Rs 12,495 crore.