Retail loanbook of financiers in India will double to Rs. 96 trillion by March 2024, compared with Rs. 48 trillion in March 2019, according to an ICICI Bank report powered by CRISIL. The report predicts that this rapid growth will take place in the next five years on the back of increased demand for private consumption (namely home, car, consumer durables, credit cards etc), willingness of consumers to take loans, increased availability of various consumer data, improved usage of data analytics and regulatory initiatives propelling growth in low cost housing loans and MSME (Micro, Small & Medium Enterprises) loans.
According to the key highlights of the report, which was launched in Mumbai at the Bank’s headquarters on December 17, the main segment contributors for the growth are Mortgage loans market—normal & low cost housing and loan against property—is expected to double to Rs. 46.1 trillion in FY24, Unsecured loans — personal loans and credit cards—to more than double to Rs. 13.8 trillion in FY24,Loans to MSMEs are likely to more than double to Rs. 13.2 trillion and Vehicles—commercial vehicle, four and two-wheeler—loans are tipped to nearly double to Rs. 17.5 trillion
The report is based on interviews with 200 experts from the retail loans industry, ICICI Bank’s deep understanding of the consumer finance category, CRISIL’s proprietary economic projection models, publicly available company disclosures, annual reports, industry data from RBI, SLBC, SIAM and global reports on other economies.