Loan sanctions by non-bank companies grew 6 per cent on year to ₹4.3-lakh crore as of December 2023, primarily driven by growth in consumption loans such as two-wheeler, consumer, gold, personal and education loans.

Person loans grew the highest in absolute terms at ₹14,429 crore, or 27 per cent, on year to ₹67,722 crore. However, they grew only 1 per cent on quarter, likely in part due to the higher risk weights on some unsecured loans rolled out by the RBI in November 2023.

Gold loans grew 14 per cent y-o-y and 8 per cent q-o-q to ₹44,744 crore, and two-wheeler loans by 22 per cent on year and 39 per cent on quarter to ₹20,717 crore, according to data by CRIF and FIDC.

Long term loans

On the other hand, long-term loans (of over 3 years), medium-term loans (of 1-3 years), loans against shares, and equipment finance declined significantly, both on year and quarter. Housing loans fell 2 per cent y-o-y and 13 per cent q-o-q to ₹47,199 crore.

Overall loan sanctions declined 4 per cent on quarter, largely led by a fall in education loans, unsecured business loans, auto loans, and used car loans.

Property, commercial vehicles, business loans, used car loans, and commercial equipment loans were some loan categories that reported steady growth y-o-y but a decline q-o-q. On the other hand, short-term loans (under 1 year), lease finance, and PSL agri and KCC loans saw significant growth on a sequential basis due to seasonal fund requirements but fell on year.

Of the loans sanctioned during the reporting quarter, those in urban regions were up 2 per cent on year but lower by 8 per cent on quarter to Rs 2.3 lakh crore. Semi-urban loans grew 6 per cent yoy and 1 per cent qoq to ₹42,859 crore, whereas rural loans rose 14 per cent on year and 2 per cent on quarter to ₹1.26-lakh crore.

NBFC loan sanctions in urban areas accounted for 53.8 per cent of total loan sanctions during Q3 FY24, whereas those in rural areas comprised 29.4 per cent and those in semi-urban areas were at 10 per cent.





Source link