Festive lending slowed in Q3 amid strict norms, tight liquidity: Report

Personal loan originations saw a steep decline in Q1 FY25 after consistent growth up to Q3 FY24

Festive lending in the October-December quarter of the financial year 2024-25 (Q3FY25) saw a decline compared to the year-ago period amid tight liquidity, rising household debt and stricter regulatory norms, which led to cautious lending, according to CRIF High Mark Report.

 

Unsecured segment - personal loans and consumer durable loans – contracted sharply in value by 6.7 per cent year-on-year (Y-o-Y) and 1.9 per cent Y-o-Y respectively, whereas the secured segments – home loans- rose by 0.1 per cent Y-o-Y. Auto and two-wheeler loans saw a muted growth.

 

According to the report, key contributors for the slowdown included lack of