look news india
Mumbai: Unsecured loans of non-banking finance companies (NBFCs) have seen a decline of over 30 per cent in the period from FY17 to FY24. The increase is high due to the low level, but unsecured loans have seen twice the growth compared to retail secured loans such as vehicle, gold, home.
According to a report, the share of unsecured retail loans by NBFCs has increased to 14 per cent in the total credit of NBFCs.
If loans given to the infrastructure sector are excluded, the share of unsecured loans is up to 22 per cent. This share was five per cent in March 2016.
Retail unsecured loans have seen rapid growth in personal and consumption loans. Led by unsecured loans, retail loans have seen a compounded growth of 18 per cent in the period FY17 to FY24. In total lending too, NBFCs have gained in their market share. It has achieved a compounded growth of 15 per cent in market share in the period FY17 to FY24, compared to 11 per cent in banks, the report pointed out.