Loans sanctioned by NBFC sector drops 34% in Q2, personal loans see uptick

Housing, commercial vehicle and term loans fall 23-85% in the September quarter; gold loan reports growth

Business pressure for shadow bankers got worse in September 2019 quarter (Q2). Data by Finance Industry Development Council (FIDC) shows that the amount of loans sanctioned by non-banking finance companies (NBFCs) plunged by 34 per cent year-on-year to Rs 1.95 trillion in Q2. In the June 2019 quarter, too, the amount of loans sanctioned was down by 15.5 per cent year-on-year. FIDC is a representative body of NBFCs.

The dismal sanctions were across many product categories. Housing, term loans (medium and long) and commercial vehicle segments, which together formed over 48 per cent of NBFCs' total sanctions in FY19 reported