The sharp surge in unsecured lending has more observers highlighting risks and advising caution. After credit bureau TransUnion Cibil flagged concerns over the sharp rise in unsecured retail advances by banks and NBFCs, now rating firm India Ratings (Ind-Ra) has called for higher capital buffers and close monitoring of unsecured advances by non-bank lenders.
Growing per capita income, financial inclusivity, greater internet penetration and a large unmet credit demand of SMBs is fuelling growth of digital lending in India, , fintech nation, credit card, dues, two lakh, magazine 29 July 2023
Total spending or outstanding dues,which remained range-bound throughout the year in previous fiscal, have been rising 5 per cent month on month this year
Credit card spends were in the range of Rs 1.1-1.2 lakh crore throughout FY23, but reached an all-time high of Rs 1.4 lakh crore in May this year, according to the RBI data.
Credit card spending in India has risen to Rs 1.4 lakh crore in May, according to the Reserve Bank of India. This represents an increase of 5% per month this year. Furthermore, the number of credit cards in active use has risen by more than 5 million since January 2023 and reached 87.4 million in May, which is an all-time high. However, a Transunion Cibil report has cautioned that credit card delinquencies have been rising, increasing by 66 basis points to 2.94% in March 2023.