Indian lending market grew 100% from FY17 to FY21, reveals CRIF’s How India Lends – Credit Landscape in India FY 2021 report

The report captures key lending trends across Retail, Microfinance and Commercial MSME sectors over the last 5 years and deep dives into the impact of COVID-19 in Q1 & Q2 FY21 and subsequent rebound in lending during Q3 & Q4 FY21 

National, 31 August 2021 - CRIF High Mark, a leading Indian credit bureau, today, launched its How India Lends, FY 2021 report. The report focuses on the overall lending data and insights into Retail, Microfinance and Commercial lending in India. It details out an evaluation of the market over the last five years (FY17 – FY 21) to show historical trends in lending. Further, the report also assesses the impact due to COVID-19 on lenders and borrowers, alike. 

Size of the Indian Lending Market

According to the report, the total size of the lending market in India as of Mar’21 stood at INR 156.9 lakh crores, which is a 100% growth from FY17 to FY21. Over the last five years, Retail, Microlending and Commercial Lending portfolios have witnessed an increase by 91%, 157% and 93%, respectively. Retail and Commercial Lending contribute 49% each to total lending in India and Microfinance contributes to 2% of the overall lending pie. 

Performance of the major loan categories

How India Lends covers leading loan categories in the Retail lending segment -

  • 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
  • Credit Cards witnessed 2.4X growth in New Card originations from FY17 to FY20 followed by a drop in FY21
  • Two-wheeler loan books saw 1.8X growth in originations by value and 1.2X growth in originations by volume
  • Auto loans portfolios recorded 23% growth in originations by value from FY17 to FY19 followed by a de-growth in FY20 and FY21
  • For the same period, Home loans portfolio observed 32% growth in originations by value and 15% growth. Affordable Home Loans grew by 17% in originations by value and 6% by volume
  • Business loans witnessed 17% growth in originations by value from FY17 to FY20, followed by almost 2X Y-o-Y growth in originations by volume from FY20 to FY21 

Mr. Navin Chandani, MD & CEO, CRIF High Mark, said, “Our report, How India Lends - FY21, 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 favorable lending environment. As development of credit spurs economic growth, we are committed to study and publish reports that will benefit the lending ecosystem.  

How India Lends in India FY 2021 analyses the prominent lending categories and provides lender and borrower specific data and trends. By focusing on loan distributions, delinquency shifts and other similar aspects, the report aims to emphasize on the way the key categories have grown across Retail, Microfinance and Commercial lending. It represents a 360-degree view of the sector that can serve as a benchmark for the industry at large.