Banks Are Quietly Exiting Small Ticket Durable Loans to NBFCs

Credit cards are replacing loans for TVs and washing machines

Bank lending for consumer durables like washing machines and televisions is shrinking, while credit cards are increasingly used for these smaller purchases. The space is being filled by non-banking finance companies that can profit from low-ticket ticket sizes. Consumer durable loans remain a tiny share of total bank lending, and the shift toward cards and NBFCs is likely to keep growing.