Are we seeing the beginnings of India’s sub-prime loan problem?
NBFC consumer lending data show 45 percent of origination is from the ‘below prime’ segment
November 05, 2019 / 08:56 AM IST
If credit growth is any indication, then the economy is far from bottoming out. The government’s attempt to boost credit during the festival season by announcing a loan mela has fallen apart. RBI data show that outstanding non-food credit barely grew at 0.22 percent between 27 September and 11 October. Recall that the loan mela was conducted by banks during 1-9 October across 250 districts.
More importantly, consumer credit growth was among the few segments that were giving some...