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Fintech companies disbursed 10 crore loans during the fiscal year 23-24, an increase of 35% compared to a year ago (Fintech Association for Consumer Empowerment) FACE said. Disbursement value increased 49% to ₹1,46,517 crore in FY24. The association said that the average ticket size for loans disbursed in FY24 stood at ₹12,648, compared to ₹11,094 in FY23.
Based on data reported by 29 members companies, 83% were profitable in FY24, compared to two-thirds in FY22 said the report. Fintech Association for Consumer Empowerment (FACE) is an industry body that tracks the progress of digital loans.
The report also said that in the fourth quarter of FY24, member companies disbursed 2.69 crore loans worth ₹40,322 crore at an average ticket size of ₹13,418. The quarterly growth rate is 3% over the Q3 FY24.
The report mentioned that from 37 member companies, 31 companies, accounting for almost 90% of disbursement value in Q4 FY24, reported an AUM of ₹63,345 crore, equally distributed between on and off-balance sheets.
For 24 companies with in-house NBFCs, 79% of the AUM is on the balance sheet, and there has been no significant change in the balance sheet composition over the last three years.
The companies raised ₹1,913 crore in equity and ₹16,259 crore in debt. Equity dropped compared to FY23 for the companies that reported data. Nine companies that reported data for Default Loan Guarantee (DLG) reported 51 portfolios worth ₹9,118 crore. Nearly 94% of DLG portfolio value has DLG coverage between 4% and 5%.
“The digital lending sector is responsibly driving ahead with a sharp focus on customer-centricity, compliance, risk management and sustainable business models. Collectively, we take pride in our members crossing the milestone of 10 crore loans, contributing to public policy goals of financial inclusion and resilience. These trends reflect the industry’s remarkable maturity and adaptability to macro conditions. The digital lending regulations have laid a solid ground for fintech lending to set higher benchmarks for innovation, conduct, and diversification and boost its impact in the coming years,” said Sugandh Saxena, CEO at FACE.
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