Unsecured loans jump 47% in 2 years till March led by small-ticket lending

Unsecured retail loans grew at a CAGR (compounded annual growth rate) of 47 per cent from March 2021 to March 2023 led by digital and IT oriented small ticket lending, according to Trans Union CIBIL’s Credit Market Indicator (CMI) report.

The report tracks credit market health via parameters including demand, supply, consumer behaviour and performance. The CMI for Q4 FY23 was at 102, up from 94 a year ago, further bolstering the upward trend in credit market activity since mid 2021.

All credit products, barring mortgage loans, registered double digit growth in FY23, with outstanding advances for product categories rising 1438 per cent YoY. The slump in home loans was led by the affordable housing segment — home loans with sanction amount of less than Rs. 25 lakh — wherein the volume fell by 16 per cent and by value 15 per cent YoY. Home loans of over Rs. 25 lakh rose 1 per cent by volume and 6 per cent by value.