Consumption Loan Portfolio Expands 15% to ₹90 Lakh Crore in FY'24: Report

India's consumption loan portfolio has surged by 15% in FY'24, reaching an unprecedented ₹90 lakh crore, as reported by financial experts. This expansion underscores the growing reliance on credit for personal and lifestyle needs. Below are some key highlights:

• Record Growth: The total loan portfolio increased by 15%, hitting ₹90 lakh crore, reflecting heightened consumer borrowing.
• Loan Categories: Personal loans, housing loans, and vehicle loans saw the highest demand.
• Key Drivers:
  • Economic Recovery: Post-pandemic economic rebound, leading to increased disposable incomes.
  • Digital Lending: Easy access to credit through fintech platforms and banks’ digital offerings.
  • Consumer Sentiment: Increased borrowing for discretionary purchases such as home improvements, travel, and electronics.
• Favorable Interest Rates: Low-interest rates offered by lenders have made borrowing more attractive.
• Potential Risks: Experts caution that the rise in credit consumption requires close monitoring to avoid over-leveraging and potential defaults.

This trend marks a pivotal moment in India's financial landscape, showcasing how consumer credit is playing an integral role in driving economic growth.