Indian Economy News

NBFC loan sanctions grew 6% Y-o-Y in Q3 FY24, consumer segment up 30%.

  • IBEF
  • April 4, 2024

During the third quarter ended December 2023, non-banking financial companies (NBFCs) experienced a 6% year-on-year increase in loan sanctions, driven by strong performances in the consumer, gold, and personal loan segments during the festive season. Notably, consumer loans saw a substantial 30% y-o-y growth, reaching US$ 3.6 billion (Rs. 29,813 crore), while gold loans and personal loans also exhibited healthy growth. However, home loans showed a marginal contraction of 2% y-o-y. Director-General of the Finance Industry Development Council (FIDC), Mr. Mahesh Thakkar, pointed out a growing trend in commercial vehicle and equipment loans, as well as loans against property (LAP), suggesting a potential revival in capital expenditure.

In addition, commercial vehicle loans saw a notable 17% y-o-y growth, while LAP loans recorded a 23% increase. Urban sanctions grew modestly by 2% y-o-y, whereas rural areas experienced a robust 14% y-o-y growth in NBFC sanctions, according to FIDC data. While some sectors, like consumer loans, continued to grow, others, such as home loans, witnessed a contraction, indicating diverse trends within the NBFC lending landscape during Q3 FY24.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.