Retail Credit

Rising delinquencies in consumption-led loans come amid credit slowdown

With the RBI's intervention by way of risk weighting, retail credit growth has slowed down to around 16.3 per cent year-on-year as of late November 2024

What you can't get away from is the retail credit story is at an inflection point

Modern lending ecosystems now have access to richer data through alternate data sources such as Account Aggregators (AA)

The firm has raised four funds and invested over $1 billion in performing credit, primarily focusing on India and Southeast Asia

Credit to NBFCs grew by 11.9 per cent Y-o-Y in August 2024, down sharply from 21.3 per cent a year ago. Credit to trade declined to 15.5 per cent from 17.4 per cent in August 2023

Balance-level delinquencies in credit card segment stood at 1.8 per cent in Q1FY25 - highest among all other credit divisions

RBI likely to allow access to both legacy, fintech NBFCs

The Financial Stability Report of June 2024 has it that delinquency levels among borrowers with personal loans below Rs 50,000 remain high

Growth in personal loans; credit to NBFC down sharply

According to CRISIL Ratings' bi-annual 'MSME Report' (June 2023), the debt need of the sector is more than Rs 100 trillion. Of this, 70% is for working capital requirements alone

The enhanced guidelines must be issued to lending institutions to protect the interests of the microfinance sector and specifically its clients

Firms that create differentiated risk assessments and invest in quality solutions will win, say industry executives

Credit offtake by services, industry stays robust

Higher risk weights, base effect, deposit challenge may weigh on growth

In India, shift to private credit, Nishu said, started before the Covid era, driven by regulatory reforms including the Insolvency and Bankruptcy code, Real Estate Regulatory Authority (RERA) Act etc.

The investment follows Svatantra's recent acquisition of Chaitanya India Fin Credit Limited

In the future, he noted that the central bank aims to include both banks and non-banks gradually into the platform for their loan journey

Lentra integrates AI aims to revolutionise loan disbursement and transform the banking industry with rapid credit decisions, new digital tools

The month of October is marked by festive season demand and also the start of the busy season of the financial year