Branch2 Intelligence
Healthy credit cycle set to keep NBFCs on growth track in Q1
Key takeaway
NBFCs in India expect 20% AUM growth in Q1 2025 driven by affordable housing, microfinance, and commercial vehicle loans.
- Step 11st-order: Falling bond yields reduce NBFC funding costs, improving net interest margins.
- Step 22nd-order: Lower cost of funds enables NBFCs to offer competitive rates, driving loan demand growth in affordable housing and microfinance.
- Step 33rd-order: Sustained credit growth supports economic activity in SME and rural segments, reinforcing the credit cycle.
Source: IN:Economic Times
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