The economy survey on July 22 showed that bank credit to sectors like industry agriculture, and housing saw a increase in fiscal year 2024.
Agricultural credit improveed almost 1.5 times to Rs 20.7 lakh crore in FY2014 from Rs 13.3 lakh crore in FY2011. “The Kisan Credit Card scheme has played a considerable role in providing timely and hassle-free credit to farmers with over 7.4 crore active KCC (Kisan Credit Card) accounts at the end of 2023,” the survey revealed.
Credit to industries flourish by 8.5 percent in March 2024 compared to 5.2 percent a year ago, driven by an extend in bank credit to small and large industries. The survey said that, “The growth in credit delivery to small, micro and medium enterprises (MSMEs) has been supported by the availability of collateral-free loans with 100 percent credit guarantee under the Emergency Credit Linked Guarantee Scheme. “
The survey also says about to the bank credit to the services sector remains resilient despite the slowdown in credit increment to NBFCs. It also told that within the services sector, credit delivery to the commercial real estate and trading sub-sectors improved in H2FY24. “Personal loans and NBFCs have the largest share in loans distributed by banks. “Within personal loans, housing loan growth remained limited during FY2020, with signs of recovery in April and May 2024,” the survey revealed.
Housing loan disbursement increased from Rs 19.9 lakh crore in March 2023 to Rs 27.2 lakh crore in March 2024.
However, personal credit growth slowed down as the RBI increased the capital requirements for unsecured personal loans, credit cards and lending to NBFCs from 100 percent to 125 percent after December 2023.
