The retail loan book of financiers in India is expected to double to Rs 96 trillion by March 2024, compared with Rs 48 trillion in March 2019 a report prepared by ICICI Bank and CRISIL jointly said. The report predicts that this rapid growth will take place in the next 5 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 loans. The report, titled ‘Mining the Golden Opportunity in Retail Loans’, also discusses the growth drivers of each retail asset class and outlines the major economic, regulatory and technological interventions that will drive the expansion of the retail loans market. The report, launched in Mumbai, lists the main segment contributors for the growth as: mortgage loans market, unsecured loans, loans to MSMEs and loans for commercial vehicles, four and two-wheelers. Anup Bagchi, ED of the bank, said analysis predicts that this junction will prove to be an inflection point for the country, as it was with another large economy a few years ago. In the next 5 years, the domestic retail loans market is poised to double to Rs 96 trillion, he added. Amish Mehta, COO and president, CRISIL, said players with a strong funding franchise, distribution heft, superior underwriting skills, strong focus on technology and balanced mix of secured and unsecured loans would be ahead of the pack in the retail loans sweepstakes.
