Retail loan origination slows down in FY25 amid multiple headwinds

Retail loan origination slowed down in FY25 due to a variety of reasons, according to the latest report of CRIF High Mark Credit Information Company. 

Home loan originations slowed down to 2.7 per cent in FY25, compared to 9.9 per cent in the previous year due to higher property prices and macroeconomic challenges. Personal loan originations declined due to rising risk persecution and delinquencies. 

Auto loan growth moderated sharply in FY25, reflecting weaker demand and post-pandemic normalisation. Consumer durable loan originations slowed with rising delinquencies of both NBFCs and private banks. 

Credit cards originations fell due to tightening of credit standard and demand moderation.