Retail credit aplenty. But why is our spending growth soft?

livemint.com:

₹50,000 remain high. In particular, NBFC-fintech lenders, which have the highest share in sanctioned and outstanding amounts, also have the second highest delinquency levels, only below that of small finance banks." Indeed, the sharp growth in bank lending to NBFCs from 2.5% of the GDP in 2016-17 to 5.2% in 2023-24, suggests the rise of fintech's lending money. Also, with loans easily available over a smartphone, there has been a drop in lending standards at the lower end of the market, leading to higher delinquencies.

When it comes to retail loans, the division between housing loans and non-housing loans is around half and half. In the last five years, from the end of 2018-19 to the end of 2023-24, non-housing retail loans have grown by 19.7% per year on average. In comparison, housing loans have grown by around 18.6% per year on average.

But this comes with a disclaimer. A good portion of housing loan growth came between the end of 2022-23 and the end of 2023-24, when they grew 36.7%. If we look at the four-year period between 2018-19 and 2022-23, they have grown at a much slower pace of 14.5% per year on average.