Loans disbursed by digital lenders have risen by 27% to Rs 37,676 crore, according to a report released by the Fintech Association for Consumer Empowerment (FACE), an RBI-recognised Self-Regulatory Organisation in the Fintech sector (SRO-FT). However, this represents a 5% decrease compared to the fourth quarter of the previous fiscal year, with nearly half of the companies reporting a decline in disbursements due to seasonal trends.
“The data affirms strong customer demand for digital credit and its pivotal role towards the country’s financial inclusion,” said Sugandh Saxena, CEO at FACE. “Member companies responsibly meet customers’ credit needs within the regulatory guardrails of customer protection and prudent risk management, earning the trust of the customers and stakeholders,” she said.
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Data signals the industry’s adaptability to overall macro conditions and alignment with the policy objectives, added Saxena.
The report, which tracks digital loans for the June quarter, highlights disbursement trends from 33 FACE members. “In terms of volume, loans crossed the 2.64 crore mark, registering a 15% year-on-year growth. Disbursement volume declined by a marginal 1% compared to the March 2024 quarter, with over 60% of companies reporting sequential decreases. Eleven companies, with quarterly disbursements exceeding `5 lakh, contributed 93% of the total volume.
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The average ticket size for loans disbursed in the first quarter of 2024-25 is Rs 12,997, reflecting a 16% increase from the same quarter in the previous fiscal year. Of the 33 companies tracked in the report, 27, or about 80%, reported assets under management of Rs 47,362 crore as of June 2024.
According to the report, 54% of loans disbursed in the first quarter of 2024-25 are through in-house NBFCs.