Chennai: Personal loans origination—fresh loans sanctioned—grew 122 per cent in volume terms in FY22, indicating that more people sought credit to rebound after the pandemic.
However, business loan origination volumes declined 22 per cent in FY22 compared to the previous year.
Personal loans witnessed 46 per cent growth in originations in value terms and 122 per cent growth in origination by volume from FY21 to FY22, as per a report of credit information provider CRIF High Mark.
From 286 lakh in FY21, personal loan originations in volume terms went up to 633.9 lakh in FY22. Part of the growth is also due to the low base effect. Loan origination volumes, which have been going up in the past few years, fell in FY21 due to the nationwide lockdowns. From 401 lakh originations in FY20, it had fallen to 286 lakh in FY21. The origination values also had fallen in FY21.
The majority of personal loans, 85 per cent, had a ticket size less than Rs 1.0 lakh, up 13 per cent from 75 per cent a year ago. The share of higher value loans came down in FY22.
In the case of business loans, the origination volumes declined from 60.2 lakh in FY21 to 47.1 lakh in FY22. The drop was mainly due to the Covid second wave in the second quarter. However, in value terms there was a 10 per cent growth in origination.
Among retail loan categories home loan origination volumes grew higher than the previous years, whereas two-wheeler and auto loan volumes were down compared to FY20 levels, despite growing over FY21.
The size of the total lending market in India as of March’22 stood at Rs 174.3 lakh crore, which marks an 11.1 per cent growth over March 2021. As of March 2022, commercial, retail, and microfinance lending made up 49.5 per cent, 48.9 per cent, and 1.6 per cent, respectively, of total loans.
