Delinquency in retail loan sector has come down: CIBIL

Housing loans fell sharply to 0.57% from 1.46% as at the end of 2010

Delinquencies in retail and home loans have come down substantially compared to five years ago, according to a trend report released by Credit Information Bureau (India) Limited (CIBIL) on Friday.

The delinquency in area of retail and personal loans, where a customer misses payment of three equal monthly Installments (EMIs) as defined by the CIBIL, has come down to 1.06% in the first quarter this calendar year from 2.31% in the year 2010. The same in housing loans fell sharply to 0.57% from 1.46% as at the end of the year 2010, according to the report.

Disclosing the details of the latest report on trends in retail credit, Harshala Chandorkar, senior vice president of CIBIL said close to 80% of the sanctioned retail loans were based on the customer credit history tracked by CBIL. Credit demand has also become broad based in the recent years while the secured loans had driven the credit off take post 2009 period, she said.



According to the report, top five states, namely Maharashtra(17%), Tamil Nadu(10%), Andhra Pradesh and Telangana (9%), Gujarat(8%) and Karnataka (8%) contributed to 55% of the credit demand, which was registered a 25% growth in 2014-15.

The CBIL, whose majority share holding is held by the US-based TransUnion International, currently has a data base of 400 million retail loan transactions and a 20 million non-retail loan transactions, based on which it provides credit history reports to both the individual customers as well as banks.

Responding to a question, Chandorkar said the banks and financial institutions do not solely depend on credit history reports of CIBIL when it comes to the sanction of business loans and corporate loans. Among other services CIBIL also maintains a mortgage repository for the banks.

Over 1.08 million new credit card accounts were opened in the first quarter of the current calendar year as compared to 8 lakh credit card accounts opened in the first quarter of calendar year 2014, according to the report.