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Consumer lending to grow 15-20% annually despite headwinds: InCred Finance

Economic TimesEconomic Times Ā· 11m
Consumer lending to grow 15-20% annually despite headwinds: InCred Finance

Non-banking finance company InCred Finance predicts that consumer lending in India will grow by 15% to 20% annually, despite the increasing stress on portfolios. The retail lending balances in India currently stand at Rs 89 lakh crore ($11.9 trillion), with consumer finance outstanding balances exceeding Rs 22 lakh crore ($2.9 trillion) and growing at over 25% per year. While the risk performance of standard personal loans is improving, small ticket personal loans (STPL) have seen a deterioration in risk performance. Concerns about the rapid growth in unsecured loans have led the Reserve Bank of India to increase risk-weights on unsecured credit and bank loans to non-banking finance companies.

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