Personal loan growth spikes 32%, quarter soars 10%: CRIF-FIDC

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personal loans. Unravelling the destination of these trillions in personal loans poses a captivating and pivotal question. Discerning where this capital is directed enables us to assess the influence of credit expansion on the Indian economy and pinpoint potential areas of concern.

The credit scenario is illuminated by the recently disclosed CRIF-FIDC data, which underscores the volume of loans extended by non-banking finance companies (NBFCs) in India during the last quarter of 2023-24. Personal loans amounting to ₹64,778.27 crores were disbursed, surpassing other loan categories such as auto loans, education loans, gold loans, and healthcare financing. Undoubtedly, a significant portion of these credits is allocated to consumption-based loans, including vehicle loans, credit card payments, loans against fixed deposits, gold, shares, bonds, education loans, and housing loans.

This observation doesn’t disregard the noteworthy trend of individuals seeking personal loans despite the upward trend in interest rates. The year-over-year surge in personal loans reached 32 per cent, and the quarter-over-quarter growth is approximately 10 per cent. Over the last two years, personal loan disbursements have surged by 141 per cent, underscoring the growing trend of individuals turning to credit for financial support.

Even though loans against gold, amounting to ₹41,275.27 crores, were sought, there has been a substantial 30 per cent decrease in the demand for gold loans compared to the previous quarter. The heightened amount of housing loans reflects an expanding extension of credit, supporting the resilient housing market in India, influenced by competitive interest rates and government incentives. It’s worth noting the significant