Personal loans portfolio doubled in value in past 5 fiscals

The personal loans portfolio in India witnessed an over two-fold growth in originations by value during the period of FY17-FY21, according to a report by CRIF High Mark.

Titled 'How India Lends, FY 2021', the report said: "The overall personal loans portfolio witnessed 2.3x growth in originations by value and 3.8x by volume from FY17 to FY21, while the same for Small Ticket Personal Loans is 3x growth in originations by value and 11.5x by volume"

Further, credit cards witnessed 2.4x growth in new card originations from FY17 to FY20 followed by a drop in FY21.

According to the report, the total size of the lending market in India as of March 2021 stood at Rs 156.9 lakh crore, which is a 100 per cent growth from FY17 to FY21. Over the last five years, retail, microlending and commercial lending portfolios have witnessed an increase by 91 per cent, 157 per cent and 93 per cent, respectively.


Retail and commercial lending contribute 49 per cent each to total lending in India and microfinance contributes 2 per cent of the overall lending pie.

Navin Chandani, MD & CEO, CRIF High Mark, said, "Our report is an attempt to highlight the credit trends in India from FY17 to FY21. Lending institutions and the policymakers could benefit from the report and collaborate to promote a favourable lending environment. As development of credit spurs economic growth, we are committed to study and publish reports that will benefit the lending ecosystem."

Microfinance loans dominated by banks and NBFC-MFIs witnessed 2.1x growth in originations by value from FY17 to FY20 followed by 31 per cent de-growth (by value) in FY21.


Share of originations by value of ticket size of more than Rs 30,000 has increased by 38 per cent from FY17 to FY21.-IANS