According to data released by credit bureau TransUnion, there has been a 141 per cent increase in borrowers inquiring about personal loans for the three-month period ended May 2022, as against 93 per cent in inquiries for the three-month period ended March 2022. percentage has increased. sybil,
TransUnion CIBIL said the latest data shows that there has been a steady increase in origination volumes for most retail loan products, driven by both an improvement in demand for these products and the lender’s willingness to advance loans. For the quarter ended March 2022, personal loan originations grew 125% year-on-year, while credit card outstanding grew by 59% and consumer durable loans by 21%. banking sector unsecured loan Portfolio stands at Rs 9.16 lakh crore as of May-end as per latest reserve Bank of India Information
Importantly, retail loans are growing across geographies and the rise of rural and semi-urban borrowers is significant. TransUnion CIBIL’s latest March Credit Monitor Indicator (CMI) shows that these groups together now account for almost half –47% – of inquiry volume, up from 41% in January-March 2020 and 45% in January-March 2021 . The latest 95 is well above its low of 78 in January 2021 and is showing steady growth, which means there is a strong pick-up in retail loans.
The CMI is a comprehensive measure of data elements that are summarized to analyze changes in credit market health on a monthly basis and classified under four pillars: demand, supply, consumer behavior and performance. These factors are combined into one indicator, and the columns can be viewed in more detail individually.
All major credit products have declined, which is a positive indicator for sustainable and profitable growth for lenders. The biggest drop has been for consumer durable loans=nu 168 bps (bpd id a basis point of 0.01 percentage point) followed by two wheeler loans- 135 bps and loan against property -108 bps. Delays for unsecured personal loans fell 54 bps.
“Encouragingly, while demand and lending balances have increased overall, crimes have also improved,” said Rajesh Kumar, Managing Director and CEO, TransUnion CIBIL. “At the same time, financial inclusion measures have also improved. This suggests that consumers are able to access existing credit or apply for new credit facilities as well as meet their lending commitments.”