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<keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>'s <keyword id="23127366" type="General" weightage="20" keywordseo="consumption-loan" source="Orion">consumption loan</keyword> portfolio grew by 15.2% year-on-year (YoY) to Rs 90.3 lakh crore as of March 2024, according to the latest <keyword id="6354680" type="General" weightage="20" keywordseo="credit" source="Orion">credit</keyword> bureau report. The fourth edition of the CRIF High Mark report noted a slowdown from the 17.4% growth recorded in March 2023, largely due to a deceleration in the home <keyword id="6362287" type="General" weightage="100" keywordseo="loans" source="Orion">loans</keyword> segment, which accounts for 40.1% of the overall consumption loan portfolio by value. The home loans portfolio saw growth slowing down to 7.9 % YoY in FY24, from the 23 % expansion seen in FY23. This was mainly due to muted growth in "originations", which increased by 9.2 % in FY'24 compared to 18.2 % in the previous fiscal year. Origination refers to the process by which a lender creates or initiates a new loan or credit, including evaluating, processing, and approving a borrower's application. The report finds a shift toward higher <keyword id="6871589" type="General" weightage="20" keywordseo="ticket-size" source="Orion">ticket size</keyword>s, with a growing preference for loans above Rs 35 lakh, although the average ticket size (ATS) rose by 32% from Rs 20.1 lakh in FY20 to Rs 26.5 lakh in FY24. In contrast, the personal loans segment maintained strong momentum, growing by 26% YoY in FY24, despite recent regulatory reforms. Larger ticket loans of Rs 10 lakh and above increased their share in originations by value, while loans under Rs 1 lakh continued to dominate in volume. Banks led in value-based originations, whereas non-banking financial companies (NBFCs) remained dominant in volume. Two-wheeler loans experienced a 34% YoY growth in FY24, up from 30% in FY23, fueled by a shift to higher ticket-size loans. However, the overall volume of originations grew at a slower pace of 13% in FY24 compared to 32% in FY23. <keyword id="35527" type="General" weightage="20" keywordseo="auto-loans" source="Orion">Auto loans</keyword>, on the other hand, grew by 20% YoY in FY24, compared to 22% in FY23. Consumer durable loans posted a robust growth of 34% YoY in FY24, up from 26% expansion in the previous fiscal. This growth was driven by a shift to larger ticket sizes, although origination volumes grew by only 8.5% in FY24, compared to 38.2% in FY23. The MSME lending segment displayed mixed results, with individual MSME loans growing faster than entity MSMEs. The individual MSME portfolio increased by 29% YoY in FY24, accelerating from 15% in FY23, while entity MSME loans grew by just 6.6 % YoY, a sharp slowdown from 17.2 % in the previous year. Microfinance lending also saw strong growth, with the portfolio rising by 27% YoY in FY24, compared to 21% in FY23. "The resilience of the Indian credit market is evident in the strong performance across various lending categories and the stability in delinquencies. Home loans remain dominant, but the growth in personal loans, two-wheeler loans, and the rebound of NBFCs highlight significant shifts in the lending landscape," CRIF High Mark MD Sanjeet Dawar said.

Consumption loan portfolio expands 15% to Rs 90 lakh crore in FY24, notes CRIF report

Mumbai, Feb 5 () Only six per cent of adults aged till 24 are credit active in India and have a higher proclivity for consumption loans like two-wheelers and credit cards, a report said on Wednesday. However, contrary to assumptions that this set of consumers are subprime from a risk perspective, the study by credit information company Transunion Cibil said a bulk of the "Gen Z" have better risk profiles. The report comes at a time when lenders are increasingly targeting to expand their retail books, and also amid unemployment rising to a four-decade high as per the official data. The level of credit active at 6 per cent is lower than emerging market peers like Colombia and South Africa, and also among established consumer credit markets like Canada, Hong Kong and the United States, it said. There are 147 million people between the ages of 18-24 who are eligible for credit and only nine million of them, or six per cent, apply for credit, it said, adding that for the broader adult population, the same level stands at 10 per cent. In Canada, 63 per cent of the Gen Z is credit active, while in neighbouring USA, the same level stands at 66 per cent, the study said, adding emerging markets peers Colombia (19 per cent) and South Africa (28 per cent) are also ahead. In a country where public transport services are a worry and gig economy jobs like food delivery services galore, the most popular credit product is the two-wheeler loans, it said. This is followed by consumption products such as consumer durables and unsecured credit cards, it said, adding that the high-value purchases like smartphones, personal computers or laptop, television dominate this field, rather than household appliances like refrigerators or washing machines which is preferred by older generations. The rate at which new loan accounts are being opened is growing fastest in the consumption lending category, it noted. From a risk perspective, it said it is a "common myth" that the Gen Z consumers are in the subprime credit tier because they have fewer open credit products and don't have long histories of positive credit repayment. "The majority of Gen Z consumers are not subprime," the study said. Gen Z is the newest generation born between 1995 and 2015. AA SHWSHW

Only 6% of adults aged till 24 are credit active in India: Report

The offers and details on this page may have updated or changed since the time of publication. See our article on <a href="https://www.businessinsider.com/financial-happiness-curb-bad-spending-habits-lifestyle-creep-credit-cards-2024-6" target="_blank">Business Insider</a> for current information.<ul class="summary-list"><li>Harvard professor Arthur Brooks emphasized curbing bad spending habits for financial happiness.</li><li>Brooks noted that rising credit card debt is affecting the financial well-being of many Americans.</li></ul>Bestselling author and <a target="_blank" href="https://www.businessinsider.com/book-review-strength-to-strength-by-arthur-brooks-2022-2">Harvard professor Arthur Brooks</a> believes that achieving financial happiness isn't solved by <a target="_blank" href="https://www.businessinsider.com/why-pursue-side-hustles-work-gig-economy-socializing-creativity-2023-5">chasing extra income</a> but by curbing <a target="_blank" href="https://www.businessinsider.com/how-save-money-groceries-budget-hacks-discounts-frugal-food-plan-2023-12">bad spending habits.</a>Brooks, a professor of the practice of public and nonprofit leadership at the Harvard Kennedy School and professor of management practice at the Harvard Business School, was a guest on the financial news and education site TheStreet on May 27 to discuss the science of balancing <a target="_blank" href="https://youtu.be/PfS27gC83LQ?si=qCgLwLD3-uT2Hal9">wealth with emotional well-being</a>.The author of 11 books said overcoming <a target="_blank" href="https://www.businessinsider.com/recession-outlook-economy-consumer-spending-down-breaking-2023-9">financial stress</a> hinges on tackling <a target="_blank" href="https://www.businessinsider.com/personal-finance/lifestyle-creep">lifestyle creep</a> — such as living above your means or using things like raises to elevate your lifestyle instead of building your savings — and poor money management. Brooks also pointed out that the recent surge in <a target="_blank" href="https://www.businessinsider.com/credit-card-debt-crisis-subprime-credit-scores-millennials-gen-z-2024-3">credit card debt</a> highlights the pitfalls of borrowing for consumption, which he called detrimental to financial well-being."The biggest source of stress that people make is, is not that there's not enough money, but they make mistakes with their money," Brooks said on TheStreet.<h2 id="ae94dee6-78be-4e71-b28f-dd7dfe173110">Borrowing for consumption is the most damaging financial habit</h2>Brooks pointed to the recent rise in <a target="_blank" href="https://www.businessinsider.com/credit-card-debt-interest-rates-consolidation-economy-recession-soft-landing-2024-2">credit card debt</a> as a factor that affects many people's financial happiness."The No. 1 mistake that people make is that they borrow money for consumption," Brooks said, adding that people should never borrow money to consume. "The No. 1 predictor of how your finances can drive down your happiness is borrowing for your own consumption."<a target="_blank" href="https://www.businessinsider.com/credit-card-debt-interest-rates-consolidation-economy-recession-soft-landing-2024-2">Credit card debt</a> has become a crisis in the US following the pandemic when many <a target="_blank" href="https://www.businessinsider.com/us-households-on-brink-household-savings-dry-up-september-fed-2023-9">Americans used up their savings</a>.Data collected by JPMorgan Chase shows that credit card delinquencies have soared since 2022, surpassing mortgages as the most common form of default.<div type="image" title="Consumer delinquency rates" height="316" width="550" msid="110639903" hostid="261" sizebytes="14416"></div>Brooks called borrowing for consumption the opposite of progress toward financial well-being, which can to financial happiness.Alternatively, he noted that mortgages and student loans can be considered debt that leads to progress and happiness since both can be investments in the future. However, people should avoid taking out student loans to attend a more expensive school just because they can get loans to pay for it, he said.To be sure, Brooks acknowledges that sometimes people need to use credit for consumption, such as <a target="_blank" href="https://www.businessinsider.com/snap-alice-food-stamps-hunger-government-assitance-free-meals-2024-5">buying groceries if they don't have enough money</a>.<h2 id="0975d3a2-ba46-4056-8c60-b807159e6bbb">More income can cause bigger problems</h2>To be sure, <a target="_blank" href="https://www.businessinsider.com/prices-inflation-rate-rise-drop-deflation-food-oil-car-prices-2024-1">inflation</a> has not helped people limit their spending and avoid lifestyle creep in the last couple of years as the prices of necessities like <a target="_blank" href="https://www.businessinsider.com/how-much-budget-groceries-family-four-couples-one-person-inflation-2024-4">groceries</a> and medical care have increased.But, according to Brooks, the solution isn't making more money: for some, the boost in earnings can damage personal finances through <a target="_blank" href="https://www.businessinsider.com/personal-finance/lifestyle-creep">lifestyle creep</a>.Brooks pointed to the example of somebody passing up a car they can afford and buying one twice as expensive because it's nicer."Think about the normal sources of avoidable stress that people have is that they want to consume, they want to buy something," Brooks said. "They want some stuff in their life and they don't have the means to pay for it yet. So they go into debt for it."You can see the entire interview here:Have you experienced lifestyle creep in the last four years and are willing to talk about how you managed or overcame it? Reach out to this reporter at <a target="_blank" href="mailto:cgaines@businessinsider.com">cgaines@businessinsider.com</a>.

How to find financial happiness if you're suffering from lifestyle creep, according to a Harvard professor

<ul><li>The upcoming restart of student loan payments shouldn't drag down the economy, according to Ned Davis Research.</li><li>About 46 million holders of $1.77 trillion in student loan debt are expected to resume payments in October for the first time since March 2020. </li><li>"Excess savings and government plans to facilitate repayment can offset the potential cyclical drag," NDR said.</li></ul>Don't expect the <a href="https://www.businessinsider.com/student-loan-forgiveness-struck-down-borrower-no-hope-debt-relief-2023-7">upcoming restart of student loan payments</a> to drag down the US economy, according to <a href="https://www.ndr.com/" target="_blank" rel="noopener">Ned Davis Research.</a><a href="https://www.businessinsider.com/personal-finance/student-loans">Student loan payments</a> are expected to restart in October for the first time since the start of the pandemic in March 2020. There are about 46 million holders of $1.77 trillion in student loan debt, and the average monthly payment is about $393, according to estimates by the Federal Reserve.That monthly payment could effectively be used for consumption or to pay down other debts, and given how many Americans have student debt, the suspension of that payment over the past three years could partly explain why the US economy has been so resilient.Adding to the worries of the resumption of student loan payments is the fact that <a href="https://www.businessinsider.com/consumer-credit-card-debt-tops-1-trillion-first-time-ever-2023-8">credit card debt just topped a record $1 trillion,</a> suggesting that consumer finances are getting stretched.But according to a Wednesday note from NDR economist Veneta Dimitrova, there are several reasons to believe that <a href="https://www.businessinsider.com/should-i-refinance-student-loans-lose-federal-debt-relief-programs-2023-8">the restart of student loan payments</a> should have only a limited negative impact on consumer spending and the broader economy.Most student loan debt is held by high-income earners "and those with advanced degrees who are better positioned to make payments," according to Dimitrova. "They typically have greater income flexibility and could absorb the loan payment resumption without a significant hit on discretionary spending."NDR estimates that there wil be $217 billion in student loan payments on an annualized basis, which represents just 1.1% of disposable personal income and 1.2% of personal consumption expenditures. And excess consumer savings could more than cover the upcoming resumption of student loan payments, according to NDR."Excess savings and government plans to facilitate repayment can offset the potential cyclical drag," Dimitrova said, estimating that there is still nearly $600 billion ine xcess savings from the pandemic. "Based on the rough estimate of $217 billion in annual student loan payments, this [$600 billion in excess savings] would be sufficient to cover payments for nearly 2.75 years. It's one reason why we do not expect student loans to be a major source of disruption to consumer spending and growth this year," Dimitrova said.Finally, the federal government is providing income-driven repayment plans, some of which have the option to cancel all remaining student loan debt after 20 or 25 years of qualified payments. "For all of these reasons, we do not expect the resumption of student loan payments in October to be a watershed moment for consumer spending or the cyclical performance of the economy. We estimate that it will shave off 0.1% to 0.2% of real GDP growth in Q4," Dimitrova said.And that helps explain why NDR still sees no economic recession materializing in the near-term.

Here's why the restart of student loan payments won't end up dragging down the economy

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Jacquelyn Martin/AP</div></div></div><ul><li>Erasing student-loan debt could create a "moral hazard" that would weaken the effect of any economic stimulus, Moody's Investors Service said in a recent report.</li><li>Outstanding student-loan debt is $1.5 trillion, equal to 6.9% of US gross domestic product. </li><li>Canceling student-loan debt could hurt the US government because it collects revenue on student loan payments, the report said.</li><li>Still, Moody's acknowledges the "significantly higher burden" of student loan debt in the US today. </li><li><a href="https://www.businessinsider.com/">Read more on Business Insider</a>.</li></ul>Erasing outstanding student-loan debt could have a muted positive impact on the <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword>, and also create a "moral hazard," according to a Friday analysis by Moody's Investors Service. In the last decade, <a href="https://www.businessinsider.com/category/student-loan-debt">outstanding student loan debt</a> has more than doubled, and now stands at $1.5 trillion - equal to 6.9% of US gross domestic product, the broadest measure of the US economy, the report said. That's made debt forgiveness a hot-button issue and led to proposals from Democratic presidential candidates <a href="https://markets.businessinsider.com/news/stocks/why-bernie-sanders-financial-transaction-tax-would-hurt-main-street-2019-7-1028390075#the-debate-over-high-frequency-trading1">Bernie Sanders</a> and <a href="https://www.businessinsider.com/student-loan-debt-forgiveness-elizabeth-warren-economic-impacts-2020-election-2019-4">Elizabeth Warren</a> to cancel some or all of Americans' student loan debt. But the potential benefits of erasing student loan debt would largely depend on the details of any legislation and how it is funded, wrote the team of analysts led by William Foster.Student loan debt cancellation could "yield a tax-cut-like stimulus to economic activity" that would boost household consumption and investment in the near term, and encourage small businesses and homeownership in the long term, Foster wrote.But he added: "At the same time, there are potential costs that could contribute to future generational inequality and moral hazard."He continued: "For example, the economic benefit would likely only be transitory if debt forgiveness was a one-time windfall for current borrowers, as future generations of student loan borrowers would ultimately return to debt-based financing to meet rising college costs." In addition, canceling student loan debt now could lead future borrowers to expect that their debt will be erased as well, and give them an incentive to take out even more loans, Foster wrote. That "could ultimately exacerbate the acculmulation of higher student debt burdens in the future," he said, which would make the current issue much worse.Foster also argued that universal student debt cancellation could hurt the US government because it currently collects revenue on student loan payments - some 90% of student loans are backed by the government. <div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="Moody's Investors Service" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5dbc485f2f364a504e558d07-960/screen shot 2019-11-01 at 102902 am.png"></a>Moody's Investors Service</div></div></div>"Without offsets for the lost revenue, the government's fiscal deficit would widen, pushing government debt and interest burdens higher," he wrote. He also cited a 2018 study that estimated that debt cancellation would boost US real GDP by an average of $86 billion to $108 billion per year over 10 years. While those are large numbers, it's important to point out that they are small percentages of US GDP, which is estimated to be roughly $21.5 trillion in 2019, according to the International Monetary Fund. Foster did acknowledge the "significantly higher burden" of student loan debt in the US today and the current effect of carrying that debt for consumers, including weaker creditworthiness, reduced consumption and investment, and widening income and wealth inequality, according to the report. Overall, if student loan debt were canceled, "the magnitude of the stimulus would depend on the size of the debt relief and income level of the beneficiaries," Foster wrote. Read more markets and investing coverage from Business Insider: <a href="https://markets.businessinsider.com/news/stocks/facebook-apple-amazon-netflix-google-microsoft-earnings-season-recap-2019-10-1028649369" data-analytics-position="1">Mega-cap tech stocks have dominated earnings season. Here's how each juggernaut did, from Apple to Netflix.</a><a href="https://www.businessinsider.com/investing-personal-finance-advice-from-self-made-millionaire-grant-sabatier-2019-10" data-analytics-position="1">A personal-finance expert grew his bank account from $2.26 to $1 million in just 5 years. He breaks down the mindset shift that sparked his success - and offers advice for getting ahead.</a><a href="https://markets.businessinsider.com/news/stocks/beyond-meat-ceo-wont-sell-shares-after-stock-price-drop-2019-10-1028644977" data-analytics-position="2">Beyond Meat's CEO isn't selling any of his shares anytime soon - and thinks the company could someday make $40 billion in revenue</a> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/3rd-wave-tech-stocks-why-theyre-new-disruptors-mark-baribeau-2019-10">A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption</a></h3> <div> </div> </div>

Canceling student-loan debt could have limited positive impact and introduce 'moral hazard' that would make the situation worse, Moody's warns

New Delhi, Dec 13 () Moody's Investors Service on Friday said it has lowered its 2019 GDP growth forecast for India to 5.6 per cent as slow employment growth weighs on consumption.
 It expects economic growth to pick up in 2020 and 2021 to 6.6 per cent and 6.7 per cent respectively, but sees the pace of growth remaining lower than past.
 "We have lowered our 2019 gross domestic product (GDP) growth forecast for India to 5.6 per cent, which is lower than 7.4 per cent growth in 2018," Moody's said in a report. 
 "India's economic growth has decelerated since mid-2018, with real GDP growth slipping from nearly 8 per cent to 5 per cent in the second quarter (April-June) of 2019," it noted.
 It further slipped to 4.5 per cent in July-September quarter.
 "Consumption demand has cooled notably, with slow employment growth weighing on consumption," it said. "We expect economic growth to pick up in 2020 and 2021 to 6.6 per cent and 6.7 per cent, respectively, but the pace of growth will remain lower than in the recent past."
 Moody's said fiscal measures undertaken by the government - such as corporate tax rate cuts, bank recapitalisation, infrastructure spending plans, support for the auto sector and others - do not directly address widespread weakness in consumption demand, which has been the chief driver of the economy.
 In addition, interest rate cuts by the Reserve Bank of India are not being adequately transmitted to lending rates because of the credit squeeze caused by disruption in the non-bank financial sector, it said.
 Commercial vehicle sales in India declined 22.95 per cent in the six months ended September 30 2019 compared with the same period a year earlier.
 "Commercial vehicle sales have been hit by the liquidity squeeze in the financial sector and the economic slowdown, despite support from government stimulus measures to boost demand and vehicle purchases ahead of India's migration to new emission standards," it said.
 It expected auto loan delinquencies to increase in the next few quarters as the economic slowdown will constrain demand for freight transportation and put pressure on freight rates.
 "However, the slowing economic growth has yet to significantly impact the performance of underlying loans as the decline in commercial vehicle sales over the past quarters has helped ease the surplus capacity situation in the medium and heavy commercial vehicle segments and supported the performance," it added. ANZ ANS
ANS

Moody's cuts India's GDP growth forecast to 5.6 pc for 2019

New Delhi, Mar 28 () Financial advisory firm Findoc Group on Saturday said the steps announced by the RBI will help increasing liquidity and give stability to bankers."Some private banks were in trouble and making up their CRR though wholesale market. This has definitely given boost to the system and has been able to reduce panic," Findoc Group MD Hemant Sood said in a statement.He said that the step of increasing liquidity and decreasing the repo rate and CRR will give stability to bankers."Though there are no loan takers right now but existing loans will get benefit and post quarantine, this will definitely favour businesses," Sood said.He also said that the moratorium on loan EMI on one hand has helped people to maintain liquidity but is negative for banking profitability."Though this will fuel in consumption which is beneficial for the industry post lock down. The guidance given for future was also very handy and promising when governor says that they are open to explore all conventional and unconventional methods for handling this time of emergency and panic," he said. RR BALBAL

RBI steps to help increase liquidity, reduce panic: Findoc Group

Jaipur, Nov 27 () Consumption of chemical fertilisers in the country will increase to 45 million tonnes by 2025 which will lead to increase in health hazards, experts said.
 Consumption of chemical fertilisers has been increasing in the country along with increase in agricultural production. Use of fertilisers increased to 25.6 million tonnes in 2014-15 from 1 million tonne in 1960s, CUTS International Director George Cheriyan said. 
 He was addressing a workshop on 'Developing a culture of sustainable consumption and lifestyle through organic production and consumption in Rajasthan' organised here on Wednesday.
 "As per a report, the country is estimated to require 45 million tonnes fertilisers to produce 300 million tonnes of food grains by 2025. Agricultural growth which was 8.67 per cent in 1960-70s was recorded 2.61 per cent in 2010," Cheriyan said.
 "Soil is losing fertility and production based on chemical fertilisers is adversely affecting human health. So, there is a growing need to increase organic production and consumption," he added.
 He said the Right to Health is a basic fundamental right and there is a need for urgent policy shift in the country.
 The workshop was attended by special guest V S Yadav, Dean, S.K.N. Agriculture University and Jagdish Pareek, a progressive organic farmer from Sikar district who has been awarded with Padma Shri.
 Pareek said farmers are borrowing money to make part payment to avail government subsidy and are trapped in vicious circle of loan interest, which leads to them committing suicide.
 He said the government should provide subsidy on agriculture equipment and purchase of seeds, instead of funding greenhouse or polyhouse.
 Yadav stressed on the need to adopt organic farming and asked organic producers to market their products. AG RVK

'Chemical fertiliser consumption to increase to 45 mn tonnes by 2025'

New Delhi, The per capita monthly household expenditure more than doubled in 2022-23 as compared to 2011-12, according to the latest study of <keyword id="20720109" type="General" weightage="20" keywordseo="national-sample-survey-office" source="keywords">National Sample Survey Office</keyword> (<keyword id="20411472" type="General" weightage="20" keywordseo="nsso" source="keywords">NSSO</keyword>). NSSO, under Ministry of Statistics and Programme Implementation, conducted Household Consumption Expenditure Survey (<keyword id="20462990" type="General" weightage="20" keywordseo="hces" source="keywords">HCES</keyword>) during August 2022 to July 2023, an official statement said on Saturday. The survey aims at generating estimates of household Monthly Per Capita Consumption Expenditure (MPCE) and its distribution separately for the rural and urban sectors of the country, for states and Union Territories, and for different socio-economic groups. As per the survey, the average MPCE at current prices (without imputation) more than doubled to Rs 6,459 in urban areas in 2022-23 from Rs 2,630 in 2011-12. Similarly in rural areas, it jumped to Rs 3,773 from Rs 1,430 at current prices. As per the study, the average MPCE at 2011-12 prices (without imputation) also increased to Rs 3,510 in 2022-23 from Rs 2,630 in 2011-12 in urban areas. Similarly, it rose to Rs 2,008 from Rs 1,430 in rural areas at 2011-12 prices. It showed that the average MPCE also increased (with imputation) to Rs 6,521 in 2022-23 from Rs 2,630 in 2011-12 at current prices in urban areas. Similarly, it rose to Rs 3,860 from Rs 1,430 in rural areas. The average MPCE at 2011-12 prices (with imputation) increased to Rs 3,544 in 2022-23 from Rs 2,630 in 2011-12 in urban areas. It increased to Rs 2,054 from Rs 1,430 in rural areas. The estimates of MPCE are based on the data collected from 2,61,746 households (1,55,014 in rural areas and 1,06,732 in urban areas) in the central sample spread over all states and Union Territories. In HCES:2022-23, the usual practice of imputation of the value figures for consumption out of home-grown/home-produced stock and gifts, loans, free collection and goods received in exchange of goods and services etc. has been continued; and accordingly, estimates of MPCE have been generated. Besides, a provision for collection of information on the quantity of consumption for a number of items, received and consumed by the households free of cost through various social welfare programmes has been made in HCES:2022-23. Consequently, the value figures for food items: rice, wheat/atta, jowar, bajra, maize, <keyword id="20347236" type="General" weightage="20" keywordseo="ragi" source="keywords">ragi</keyword>, barley, small millets, pulses, gram, salt, sugar, edible oil and non-food items: laptop/PC, <keyword id="19986587" type="General" weightage="20" keywordseo="tablet" source="keywords">tablet</keyword>, mobile handset, bicycle, motorcycle/Scooty, clothing (school uniform), footwear (school shoe etc.) received free of cost by the households through these programmes, have been imputed using an appropriate method. Accordingly, another set of estimates of MPCE considering imputed values of these items and of consumption out of home produce, free collection, gifts, loans etc. has also been compiled for HCES: 2022-23.

Monthly household consumer spending more than doubled in last decade

<ul class="summary-list"><li>The US economy is barreling toward a 'student loan cliff,' with a moratorium on repayments set to end this year, according to Jefferies. </li><li>Cash-strapped households could scale back spending if the loan repayments resume, hitting economic growth.</li></ul>The US economy is barreling toward a "student loan cliff" as borrowers may owe $18 billion in monthly repayments once President Joe Biden's pause on higher-education loan payments ends later this year, according to Jefferies.Should such repayments resume, that will likely force households already strapped for cash to rein in their spending - and that will put a strain on the overall economy, the investment bank said. An end to the loan moratorium will affect about 45 million borrowers, according to the firm."If the resumption of student loan repayments creates ~2% downward pressure on personal consumption expenditures, the additional risk to overall US economic growth is notable," Tom Simons, an economist at Jefferies, wrote in a recent research <a href="https://javatar.bluematrix.com/pdf/Zj19gSpQ" target="_blank" rel="noopener">note</a>."To the extent that this is probably not budgeted for by consumers, the impact will be funded by reductions in expenditures," he added.Student loan-related obligations have been paused since the start of the pandemic, but the moratorium is set to end soon, with payments restarting this August or two months after the US Supreme Court makes a decision on Biden's forgiveness plan for such liabilities — whichever date comes first. Jefferies estimated that the average payment on such loans would be $393 per month, for each borrower. That can be tough for many households to factor into their monthly budget, given that they are already struggling with high living costs and staggering credit-card debt. "Households are faced with higher rates and balance sheets that have been squeezed by 2Y of high inflation. While debt coverage metrics look to be substantially improved since the start of the pandemic, a snapback to prior delinquency levels looks much more ominous," Simons said.

The US economy is barreling toward a 'student loan cliff' as borrowers may soon owe $18 billion in monthly repayments, Jefferies analyst says

India is expected to see a modest recovery in <keyword id="44910" type="UNKNOWN" weightage="20" keywordseo="GDP-growth">GDP growth</keyword> at 6.6 per cent for the April-June quarter as compared to 6.1 per cent in January-March, which was affected by <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword>, says a Nomura report. Economic activity in the country, which had lost some momentum in the run up to the <keyword id="6359833" type="UNKNOWN" weightage="20" keywordseo="goods-and-services-tax">Goods and Services Tax</keyword> (GST) rollout, has started to recover, according to Nomura. The report said while consumption and services growth indicators (especially transportation) bounced back in July, industry, investment and external sector data remain weak, or have slowed at the margin. However, a growth recovery is expected by year-end, aided by remonetisation and improved financial conditions. "Given the impact of the GST and in line with our indicators, we expect only a modest recovery in GDP growth to 6.6 per cent year-on-year in Q2 (April-June) compared to 6.1 per cent in January-March, which was affected by demonetisation. However, in the second half of 2017, we expect growth to accelerate sharply to 7.4 per cent," it said in a research note. According to Nomura, both urban and rural consumption indicators bounced back in July. While, diesel consumption and consumer credit also picked up, confirming that underlying consumption demand is robust. However, there were weakness in investments, industry and external demand, it added. On the monetary policy front, Nomura said the <keyword id="6354335" type="UNKNOWN" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> is expected to stay on a prolonged pause. The Reserve Bank in its policy review meet this month has lowered its key lending rate by 0.25 per cent, a move which is likely to translate into lower interest rates for home, auto and other loans as also boost economic activity.

India's June quarter GDP to see modest recovery at 6.6%

<ul class="summary-list"><li>The US economy doesn't have any dry powder left as inflation has eaten through household savings.</li><li>Cash savings as a percentage of total consumption have returned to 2019 levels for most Americans.</li></ul>The dry powder of cash savings that was expected to cushion the economy has run out, as inflation has practically wiped out US households' excess savings, according to an analysis from Bespoke.Consumers built up "huge cash balances" during the pandemic, partly due to a pullback in spending as well as government-issued stimulus checks. That cash was thought to be a buffer to the slowing US economy, giving consumers some leeway to keep spending despite tightening financial conditions.But those expectations are actually misplaced, the investment firm said in a note, as inflation has eaten away the spending power of household savings for most Americans.Though households nominally have a higher amount of savings than they did before the pandemic, that picture changes when looking at cash savings as a percentage of total consumption, which factors in the added pressure on consumers from rising prices. When counting money market and deposit assets as a percentage of total consumption, most Americans have the same amount of savings they did in 2019.<h3>Money Market + Deposit Assets, % of Total Consumption, Change From 2019 Average (%)</h3><div type="image" title="Household savings taken as a percentage of consumption" height="389" width="934" msid="106525028" hostid="261" sizebytes="24378"></div>"For all but the highest earning and most wealthy households … cash holdings relative to consumption are basically back to where they were in 2019. In other words, there is no dry powder of cash left to fund consumption growth," the firm said. "That's especially true given the fact that the highest and wealthiest consumers are not cash-constrained for consumption in the first place."Consumers have been flashing other signs that their financial health is starting to deteriorate. Credit card debt hit a fresh all-time high last year. Meanwhile, student loan payments have restarted after a three-year hiatus, meaning <a href="https://www.businessinsider.com/paying-bills-credit-card-debt-student-loans-2023-8">it'll be difficult for many to pay keep paying bills</a> while maintaining a robust pace of spending.A slower pace of spending could spell trouble for the US economy, which still faces a decent risk of recession in 2024. A <a href="https://www.businessinsider.com/economy-consumer-spending-credit-card-debt-delinquencies-retail-hiring-2023-11">pullback in spending could result in a consumer-led slowdown</a>, Macquarie strategists said in a November note.

The economy has run out of dry powder as inflation has slashed excess household savings, investment firm says

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">David W Cerny/ReutersA Greenpeace environmental activist in a polar bear costume puts a sticker on a gas pump at a Shell gas station.</div></div></div>The US economy keeps chugging along, and it appears that it's adding even more fuel.Wells Fargo, the largest US bank by market capitalization, <a href="http://www.businessinsider.com/wells-fargo-q2-earnings-2016-7">released second quarter earnings Friday</a> and while the company reported profits right in line with expectations, underneath the hood there was some great news for the economy.In nearly every category, Wells added to its loan portfolio, indicating a strong desire for credit from both businesses and households.The most encouraging segment is probably commercial and industrial loans (C&amp;I), which are given to businesses that are looking to make large investments. According to Wells, their C&amp;I loans grew by $39.0 billion, or 13%, from the year before. Commercial real estate loans also increased by $10.7 billion, or 8% (which may or <a href="http://www.businessinsider.com/bank-regulator-worried-about-commercial-real-estate-loans-2016-7">may not be a good thing</a>).Average Americans also grew their loans from Wells. Credit card loans grew by $3.0 billion, or 10%; automobile loans were up $4.1 billion, or 7%; and mortgages increased $9.3 billion, or 3%.<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="Wells Fargo" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5788e58d4321f16c018b87ca-960/screen shot 2016-07-15 at 9.25.29 am.png"></a>Wells Fargo</div></div></div>The growth in C&amp;I is particularly encouraging given that recent data from the Federal Reserve's Senior Loan Officers Survey reported that loan officers who actually issue credit reported <a href="http://www.businessinsider.com/us-economy-is-cooling-off-2016-5">their standards were tightening</a>. Tighter standards usually presage a decline in the growth of C&amp;I loans and eventually a slowing in investments by businesses, so the counter-factual from Wells is welcome relief.Additionally, households have been <a href="http://www.businessinsider.com/great-news-us-economy-is-levering-up-2016-3">reluctant to take on more debt</a> since the end of the recession, which leads to lackluster consumption and suppresses GDP growth. Thus, the increasing number of people buying houses, cars, and goods on their credit cards may be a positive contribution to the economy and indicates that the households feel good about their financial situation.To be fair, this is just one bank so it's more a positive sign than the total picture, but Wells is the third-largest bank by total assets and has the <a href="http://www.forbes.com/sites/greatspeculations/2015/08/31/q2-2015-u-s-banking-review-loan-portfolios/#6a46a1ed66ea">second-largest loan portfolio</a> so growth in loans from the bank is notable. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/using-q-tips-to-clean-your-ears-can-do-more-harm-than-good-2016-7">Forget Q-tips - here's how you should be cleaning your ears</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="tmZWxrNDE6QHtjCDMQowdEc5Vzshce5K" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

You Searched For "consumption loan" and got 13 results

Consumption loan portfolio expands 15% to Rs 90 lakh crore in FY24, notes CRIF report

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Canceling student-loan debt could have limited positive impact and introduce 'moral hazard' that would make the situation worse, Moody's warns

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Moody's cuts India's GDP growth forecast to 5.6 pc for 2019

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RBI steps to help increase liquidity, reduce panic: Findoc Group

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'Chemical fertiliser consumption to increase to 45 mn tonnes by 2025'

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Monthly household consumer spending more than doubled in last decade

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The US economy is barreling toward a 'student loan cliff' as borrowers may soon owe $18 billion in monthly repayments, Jefferies analyst says

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India's June quarter GDP to see modest recovery at 6.6%

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The economy has run out of dry powder as inflation has slashed excess household savings, investment firm says

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America's biggest bank just proved the economy has plenty of fuel

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