With financial penetration growing incessantly in the recent past, borrowers now have access to a multitude of lending platforms where they can satisfy their borrowing needs. Besides banks, they can very well borrow from a number of financial institutions which include fintech platforms and Non-Banking Financial Companies (NBFCs).
And just like banks, loans given to retail borrowers by these alternative platforms are also growing fast in size. The latest RBI data released via a report vouches for this.
The report says that NBFCs of all hues disbursed most of their retail loans amounting to ₹4.33 lakh crore for vehicles, the data on Sep 30, 2023 shows.
This was followed by ‘other retail loans’ amounting to ₹3.23 lakh crore, reveals the latest RBI data in its Report on Trend and Progress of Banking in India 2022-23.
The report released by the banking regulator presents the performance of the banking sector including co-operative banks and non-banking financial institutions during 2022-23 and 2023-24 so far.
Education and other loans
Besides, education loans disbursed by NBFCs stood at ₹36,000 crore as on Sept 30, 2023, the RBI data shows.
The housing loans given by NBFCs were valued at ₹39,220 crore and loans for consumer durables stood at ₹38,480 crore.
There were advances to individuals against gold amounting to ₹1.40 lakh crore followed by micro finance loans amounting to ₹1.16 lakh crore.
Meanwhile, the consolidated balance sheet of non-banking financial companies (NBFCs) expanded by 14.8 percent in 2022-23 led by double digit credit growth.
Profitability and asset quality of the sector also improved in 2022-23 and in H1 2023-24.
Based on the percentage increase in loans given by NBFCs, the highest jump was seen in education loans which reported a 79 percent increase in 2023 over 2022.
In 2022, the size of education loans given by NBFCs stood at ₹14,162 crore which increased to ₹25,352 crore, indicating a 79 percent jump in one year.
The micro finance loans rose 45 percent while other retail loans rose by 40 percent.
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Published: 29 Dec 2023, 08:57 AM IST