Mumbai, Apr 23 (PTI) Personal loan originations were among the highest by value in last year's festive season between October-December 2023, a credit information company report said on Tuesday.

In the report which comes within months of the Reserve Bank flagging concerns on the unsecured lending and taking active steps to curtail such loans, Crif High Mark said originations by value were the highest in the personal loans segment along with the home loans segment.

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The overall personal loans originated stood at Rs 2.32 lakh crore during the quarter, which was higher when compared with the 2.05 lakh crore in the year-ago period and Rs 1.63 lakh crore in the third quarter of FY22, the report said.

When looked at from a volume perspective, personal loan originations were among the highest, the CIC said.

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It can be noted that fearing future setbacks, the Reserve Bank had increased the risk weights on such exposures after the end of festivities last year, to dissuade banks from taking such risks.

The CIC, however, did not share any details on the performance of such loans.

Amid some reports of more stress being observed in the low-ticket size segment on the unsecured loans front, the CIC's report said higher growth was seen in the under Rs 50,000 ticket size for consumer loans during the festive season of 2023.

The data said the growth rate by originations by value for consumer loans and home loans was higher than the one witnessed during last year's festivities.

For home loans, it said the demand was higher for lending of over Rs 35 lakh, which illustrates a shift to buying more expensive homes.

Interestingly, the data said Kanpur and Barabanki displaced Jaipur and Surat to emerge among top 10 cities by originations in value terms.

The state-run lenders dominated originations by value for auto loans, personal loans and home loans, during festive season, while the non-bank lenders dominated originations by volume in two-wheeler loans, personal loans and consumer durable loans.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)