The big sweet spot: Retail loan market to double in 5 years to Rs 96 trn

While concerns have been expressed of late that stress may be on the rise in the retail loan books, it is also true that lenders now have access to a plethora of data points for credit assessment

The retail loan market in the country is estimated to double to Rs 96 trillion in five years, and emerge as the most lucrative business vertical for lenders of all hues. It grew at a compound annual growth rate of 17 per cent between FY13 and FY18, and this run rate compares to the Middle Kingdom’s 16 per cent and United States’ three per cent during the same period.

According to an ICICI Bank-Crisil report, key drivers of the exponential growth expected in the years ahead are a) consumers being more open to taking loans, b) the