Maharashtra, Tamil Nadu and Karnataka make up for nearly 40 per cent of all retail loans in the country comprising just 20 per cent of the total population, a new report by TransUnion Cibil has found.

"The top three states in terms of retail lending – Maharashtra, Tamil Nadu and Karnataka – account for nearly 40 per cent of aggregate balances as well as 32 per cent of the credit active population. These three states account for just about a fifth of the overall population of the country,” said the report, which was released on Monday.

As on June 30, 2018 Maharashtra had the highest retail balance of Rs 5.50 lakh crore, which comprised 20 per cent of all retail balances in the country, followed by Tamil Nadu with Rs 2.77 lakh crore and Karnataka with Rs 2.74 lakh crore.

Overall, the 10 largest Indian states represented Rs 21.27 lakh crore in balances, which comprised almost 76 per cent of the total balance share, said the report. It also noted that retail lending continued to grow across all lending products as the number of live accounts grew by 26.2 per cent in the second quarter of 2018 compared to a year ago. “The number of live retail lending accounts crossed the 10 crore mark in this quarter,” the report further said.

Retail lending includes auto loans, used car loans, home loans, loans against property, personal loans, consumer durable loans, education loans, credit cards, and two wheeler loans Personal loan balances (up 43 per cent) and credit card balances (up 42 per cent) grew at the highest rate of all major credit products in the last year, the report said, adding that average borrower balance growth for both of these credit products increased nearly 14 per cent in that same timeframe.

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