India consumer loans to be $1.2 tln by 2020: Credit Suisse

Moneycontrol Bureau

India’s consumer finance market is expected to grow at a compounded rate of 18 percent and become a USD 1.2 trillion opportunity by 2020, says brokerage house Credit Suisse.

“While the experience of the last consumer loan cycle (2004-07) was bitter, we believe that a number of structural changes in the market could allow for a steady, profitable growth in the next few years. In addition, the expected fall in rates should spur growth in rate-sensitive segments such as mortgages and auto loans,” said the Credit Suisse note to clients.

“While the market still remains underpenetrated (70 percent + of households have no liabilities of any sort), the organised players (banks + NBFCs) have developed diverse products targeted at all segments of the income pyramid, across multiple secured/unsecured loan types,” the note said.