It can be noted that generally, banks charge higher interest rates for these loans due to non-availability of any collateral. Defaults are also higher in the segment.
There was an increase in origin share in terms of value for both state-owned lenders and non-bank lenders over the three-year period, while private sector lenders experienced a decline for the same thing.
However, relative to volume, there was a decline in the share of public sector banks, while the same for private banks and NBFCs saw an increase during the period under review, according to the report.
In line with sales data showing demand resilience in the segment, Loans for Two-Wheelers witnessed a drop in origination in terms of value to Rs 15,281 crore in Q3 FY22 from Rs 16,393 crore in FY19, according to the report.
As for origination volumes, there was a sharp drop of 29% to 20.4 lakh accounts in Q3 FY22 from 28.7 lakh accounts in Q3FY19, according to the report.
Auto loans saw steady growth in origination in terms of value from Rs 54,367 crore in FY19 to Rs 56,420 crore in FY22, he said. declared.
In the home loans segment, there was a 40% increase in value to Rs 1.93 lakh crore during the October-December period for FY22 compared to the December quarter of FY 19, he said, adding that private banks have done better on both value and volume before.
Consumer durable loans recorded 32% growth in origination value to Rs 26,075 crore in FY22 from Rs 19,683 crore in FY19.