CIBIL-Transunion Tracking 525 Million Loan Accounts, Rise of Retail Lending

cibil-tracking-loan-accounts-indiaCIBIL Transunion is India’s Largest credit bureau with with data on 200mn Indian Citizens and 525mn loan accounts in its big data repository. The CIBIL management shared insights on the Rise of Retail Borrowing and Lending.

The strong trend in retail loan growth is aided by healthy growth in new account additions for both private players and NBFCs thus pointing to healthy granularity of the underlying retail loan growth. Even in microfinance space the underwriting trend is good with usage of TransUnion CIBIL/Aadhar helping minimize cases of duplicate lending

Despite steady y-o-y growth in retail segment, the underwriting trend remains good and there seems to be no signs of imminent risk. Most lenders have learnt their lessons from the last meltdown in retail and have taken steps to improve their underwriting with retail lending now being completely process driven and non discretionary. The bureau didn’t express much concern on LAP segment as the proportion on a systemic wise basis is small.

Trend in personal loan recovery has improved significantly with increasing use of CIBIL and rising proportion of collateralized loans. Private banks are gaining market share across products like Auto, Home, LAP segments led by their improved distribution spread across semi urban and metro regions. The following chart shows the breakdown of Retail Lending in India in 2016 relative to 2013.

india-retail-loan-mix

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