The value of loan disbursements by fintech firms rose 49% year-on-year (y-o-y) to `1.5 trillion in 2023-24 (April-March), the latest report from the Fintech Association for Consumer Empowerment (FACE) showed on Tuesday.
The volume of disbursements rose 35% y-o-y to nearly 102 million as on March 31. The average ticket size of loan disbursements rose to Rs. 12,648 in 2023-24 from Rs. 11,094 in 2022-23.
The value of quarterly disbursements rose to Rs. 40,322 crore in January-March from Rs. 28,628 crore a year ago.
The report showed that the share of 28 companies that are registered NBFCs or have in-house NBFC comprised 70% of the disbursement value in 2023-24. The growth rate of such companies is double the growth of lending service provider companies that do not have in-house NBFC.
The assets under management of digital lenders rose to Rs. 63,345 crore as on March 31 from Rs. 35,870 crore a year ago. For 24 companies with in-house NBFCs, the off-balance sheet exposure is 21% and the on-balance sheet exposure is 79%.
According to the report, companies raised Rs. 1,913 crore in equity in 2023-24, lower than Rs. 3,171 crore in 2022-23. Similarly, companies raised Rs. 16,259 crore in 2023-24, much higher than Rs. 9,836 crore a year ago.
Nine companies who reported data for first loss default guarantee (FLDG) reported 51 portfolios worth `9,118 crore.
Based on data reported by 29 members regarding profitability, 83% were profitable in 2023-24, higher than 76% in 2022-23.
“The digital lending sector is responsibly driving ahead with a sharp focus on customer-centricity, compliance, risk management and sustainable business models,” Sugandh Saxena, chief executive officer, FACE, said.
“Collectively, we take pride in our members crossing the milestone of 100 million loans, contributing to public policy goals of financial inclusion and resilience,” she added.
