Small Industry, Big Trouble” in Hindi – print and online edition.
Will Fresh Start, bankruptcy law for small debts, help borrowers?
Mumbai, October 30, 2019 – Growth in India’s consumer credit market continued to decelerate in the second quarter, driven primarily by secured lending products. As well, non-banking financial companies (NBFCs) remained under stress, with a recent portfolio shift to higher-risk unsecured credit, according to the newly-released TransUnion CIBIL CY Q2 2019 Industry Insights Report (IIR).
NBFCs, which have played a key role in consumer credit growth in recent years, saw slower growth in the second quarter compared to banks. NBFCs continued to face difficult funding challenges and consequently have been shifting their originations strategy away from larger-value loans to smaller-ticket personal loans.
Consumer credit balances across all major credit products grew 17.1% year-on-year (YoY) in Q2 2019, compared to 23.5% YoY in Q2 2018. G...