Mahindra & Mahindra Financial Services said its loan disbursements grew 17% year-on-year to Rs 2,500 crore, which is expected to continue traction in December.
Shriram City Union Finance, a leading Chennai-based two-wheeler financier, disbursed Rs 1022 crore to finance 1.6 lakh two-wheelers in November, the highest ever in a month.
“Attractive financing offers have emerged as one of the key drivers during the festive season, leading to increased movement of people, leading to enhanced disbursements,” said Shriram City Union. -On-Month Week at 1.3 million Rural demand and higher fuel prices weighed on sentiments. Year-over-year sales declined 28.4%.
“We expect consumer sentiment in the two-wheeler market to improve with the recent cuts in fuel taxes, better personal mobility due to the reduced pandemic risk and advances in vaccinations,” Chief Analytical Officer Suman Choudhary said. In Acuité Rating and Research.
Analysts at IDBI Capital Markets & Securities expect two-wheeler sales to improve only in FY23.
Shriram City Union however expects an increase in average loan ticket size with rising demand electric vehicles, which are expensive as compared to others.
The economic recovery has resulted in better loan repayment behavior. Mahindra & Mahindra Financial Services said its collection capacity rose to 94% in November, from 91% in October and 84% a year ago.
The Mahindra Group company expects this positive trend to continue in December as well.
Bank credit growth also rose to 7.1% at the end of November 5, supporting an overall positive trend compared to a year ago.