Personal loan disbursement grew 42 per cent to March 2022 from March 2021, reflecting an improvement in overall economic and business sentiments, a report by Equifax and Andromeda said.
The number of active loans increased to 6 crore by March 2022, from 4 and 3.5 crore in the March 2021, and 2020, respectively. While, personal loans book size rose to Rs 8 lakh crore in March 2022, from Rs 6 lakh crore in March 2021.
According to report, the highest number of personal loans were disbursed by NBFCs (Non-Banking Financial Company) followed by private banks.
"The retail loans portfolio segment of the Indian lending industry has shown double-digit growth, with personal loan disbursements specifically recording significant growth. This is a strong indicator of the revival in consumption in the country," said K.M. Nanaiah, Managing Director, Equifax Credit Information Services Pvt. Ltd and Country Leader, India & MEA, Equifax.
The total portfolio outstanding of retail industry also increased to Rs 89 lakh crore in March 2022, from Rs 71 lakh crore in March 2020. While, private banks and public sector banks experienced growth of portfolio outstanding of 32 per cent and 21 per cent from March 2020 to March 2022.
The portfolio outstanding of NBFCs showed a growth of 7 per cent from March 2020 to March 2021, and a 13 per cent increase from March 2021 to March 2022.
"If the trend in the growth of personal loans sustains, we can safely assume the economy will do well in the coming years. At the same time, we must keep in mind interest rates are on the rise following three consecutive rate hikes by the Reserve Bank in four months," said Raoul Kapoor, Co CEO, Andromeda Sales and Distribution pvt Ltd.