Asset growth of NBFCs may be affected by RBI’s personal loan decision: CRISIL

India’s non-banking financial company (NBFC) sector will remain weak in the current financial year due to slow retail loan growth, rating agency CRISIL Ratings said today, anticipating the impact of RBI’s recent decision on retail personal loans. It is expected to have a moderate growth of 16-18 percent. Know how much will be the increase in the next financial year. Read what is the complete news.

Anticipating the impact of RBI’s recent decision on personal loans, rating agency CRISIL Ratings today said India’s non-banking financial companies (NBFC) sector will see a decline in growth in the current financial year due to slow expansion in personal loans. A moderate growth of 16-18 percent is expected. 

Growth may be up to 17 percent in the next financial year:-

Crisil Ratings said the asset under management retail loan segment of NBFCs is likely to grow by 14-17 percent in the next financial year due to continued strong credit demand.

Growth in home and vehicle loans will remain stable:-

According to CRISIL, home loans, and vehicle loans, the two largest traditional segments of finance, now account for 25-27 percent of NBFC AUM each. Both these segments are expected to register steady growth.

In the home loan segment, growth of 12-14 percent next fiscal will be driven by HFCs’ focus on affordable home loans (ticket size less than Rs 25 lakh), while vehicle finance is expected to grow 18-19 percent this year.

What decision did RBI take on a personal loan?

Recently, RBI has further strengthened the rules for taking personal loans, because according to RBI, the number of personal loans has increased rapidly in the last few years. RBI has further increased the risk weight on personal loans from banks and non-banking financial companies (NBFCs) and credit card providers.