Festive season boosts Bajaj Finance consumer loan disbursals by 27%

Bajaj Finance disbursed 6.3 million consumer loans between September 22 and October 26, posting 29% growth in value and witnessing a sharp rise in new-to-credit borrowers

Bajaj Finance posted 27 per cent Year-on-Year (Y-o-Y) growth in volume of consumer loans disbursed during the festival season, the lender told the exchanges on Tuesday. The value of loan growth was up 29 per cent compared to the same time last year.

 

The company disbursed nearly 6.3 million loans between September 22 and October 26. It also acquired 2.3 million new customers, out of which 52 per cent were new-to-credit in the period.

 

According to Bajaj Finance, the rise in consumption credit -- represented by loans for consumer goods -- reflects the positive impact of the government’s goods & services tax (GST) reforms and changes in personal income tax, which is aimed at increasing consumers’ purchasing power.

 

Sanjiv Bajaj, chairman, Bajaj Finance, said, “The government’s next generation GST reforms and personal income tax changes have given a fresh push to India’s consumption-led growth story. By making everyday products more affordable, these measures have empowered millions of middle and lower-income families to spend with confidence during the festival season. The positive impact is not only evidenced in the 27 per cent higher disbursement of consumption loans, but also a premiumisation trend with consumers shifting to higher-quality products for better lifestyles.”

 

The average ticket size of consumer loans has reduced by 6 per cent due to lower GST for televisions (TVs) and air-conditioners while enabling them to upgrade to higher-end products. The NBFC saw premiumisation trends in consumer financing for TVs with loans for 40-inches and above screens accounting for 71 per cent of the total TVs financed by the company as compared to 67 per cent last year.

 

“Over half of our new customers during this festival season are new-to-credit, taking their first loan from the formal financial system. With Bajaj Finance’s digital platforms and on-ground presence at 239,000 active distribution points across 4,200 locations Pan-India, we continue to deepen financial inclusion and power the rise of the Indian consumer,” he added.

 

Bajaj Finance serves 110 million customers through its digital platforms and on ground distribution points with focus to expand access to credit and transform experiences for consumers and businesses. A leading provider of consumer finance, it has a significant presence in financing of mobile phones, consumer electronics, home appliances, furniture, rooftop solar panels and many more consumption-led categories.