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Coronavirus pandemic dents growth of personal loans segment in FY21

While stress at an overall level is low, delinquencies in small ticket segment have moved up

Need cash now? Avoid taking a personal loan for discretionary purchases

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Public sector banks and private banks, largely disburse high value personal loans or pre-approved loans to customer segments who may not be banking with NBFCs.

Subrata Panda Mumbai

3 min read Last Updated : Dec 16 2020 | 1:33 AM IST

The coronavirus (Covid-19) pandemic dented the growth in the personal loans segment as the portfolio expanded by a meager 0.57 per cent in the first five months of the current fiscal (FY21), according to CRIF High Mark.

The outstanding portfolio stood at Rs 5.07 trillion at end of August 2020.

Navin Chandani, MD & CEO, CRIF High Mark said that in FY21, Covid-19 disruptions had resulted in restricted lending by financiers who were earlier steering the volume growth of the PL market. There is small growth and not a sharp clampdown, he added.

The personal loan segment had registered a

Topics : Coronavirus Personal loans fintech companies NBFCs PSBs Private banks

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