Bajaj Finance, a part of Bajaj Finserv, on Tuesday said it disbursed a record number of consumer loans in the festive season, registering a 27% growth in volume and 29% in value year-on-year. The company has attributed this growth in consumption finance to the positive effects of GST reforms and changes in personal income tax slabs.
From September 22 to October 26, Bajaj Finance disbursed 6.3 million loans and acquired 2.3 million new customers, 52% of them being new-to-credit and first-time customers.
Sanjiv Bajaj, chairman of Bajaj Finance, said the government’s next-generation GST reforms and personal income tax adjustments have provided a significant boost to India’s consumption-driven growth. He pointed out that by making everyday products more affordable, these measures have empowered millions of middle- and lower-income families to spend confidently during the festive season.
“The impact is evident not only in the 27% increase in disbursement of consumption loans, but also in a premiumisation trend, as consumers are shifting to higher-quality products for an improved lifestyle.”
With presence at 239,000 active distribution points across 4,200 locations nationwide, Bajaj Finance continues to enhance financial inclusion and support the growth of the consumer, he noted.
The premiumisation trend is particularly noticeable in sales of TVs and air conditioners, as lower prices for consumer goods allow people to upgrade their purchases. Lower GST on televisions and air conditioners has enabled consumers to reduce their average loan ticket size by 6%, facilitating upgrades to higher-end products.