Just three Indian states account for 40% of all the country’s retail loans: Report
Karnatakaand Tamil Naduaccounted for 40% of India’s retail loansat the end of the April-June quarter, according to a report by TransUnion CIBIL.
- Maharashtra, which is India’s richest state by GDP, alone accounts for more than 20% of all retail balances, with ₹5.5 trillion in outstanding retail loans.
- Between June 2017 and June 2018, aggregate retail loans rose by 27% owing to the strong demand for
creditcards and personal loans.
Just three Indian states -
These findings indicate the relative lack of aversion to credit in urbanised parts of the country. However, retail loans in Tier-III towns and villages around
In accordance with recent data from the Reserve Bank of India (RBI), the report also noted a significant increase in retail loans in the past year. Between June 2017 and June 2018, aggregate retail loans rose by 27% to ₹28 trillion. Credit cards and personal loans, in particular, were the fastest-growing retail segments, with balances in both growing at over 40% from last year.
This growth in retail loans was largely complemented by a stable level of delinquency rates. However, at 3% year-on-year, default rates were relatively high in the property lending segment. This was offset by a reduction in defaults on automobile loans and personal loans.
Finally, the report noted that India’s retail lending market crossed a significant threshold in the April-June quarter. The total amount of active retail borrowers cross 100 million for the first time over the period, boosted by a 30% rise in loans to new borrowers.