Fintech lending rises over 31% to Rs 29,875 crore, says FACE report

9 companies accounted for 81% of total disbursement made by 36 companies that are members of Fintech Association for Consumer Empowerment

Financial technology (fintech) companies disbursed 22.2 million loans in the first quarter of Financial Year 2023-24 (Q1 FY24), growing 30.6 per cent year-on-year (YoY), said an industry association on Monday.

Sequentially, disbursals grew 15.6 per cent from 19.2 million loans in Q4 FY23. As many as 17 million loans were disbursed in Q1 FY23, said the Fintech Association for Consumer Empowerment (FACE) in a report.

Companies disbursed loans worth Rs 29,875 crore in Q1 FY24, a 31.7 per cent Y-o-Y increase when compared to Rs 22,682 crore in Q1FY23. The value of loans disbursed grew 7.4 per cent on a quarterly basis from Rs 27,806 crore in Q4FY23.

The FACE report, the seventh in a series published annually, included data from 36 member companies lending to customers through their own non-banking financial corporations (NBFCs) or in partnership with other regulated entities.

As many as nine companies with a disbursement value of more than Rs 1,000 crore in Q1 FY24 accounted for 81 per cent of the total disbursement value.

"As the industry marks the first anniversary of Digital Lending Guidelines (DLG), we all draw much satisfaction in the way the industry is contributing to meet the credit needs of vast unaddressed segments, adapting extremely well to all the aspects of regulations - be it disclosures, data privacy/consent, transactions, grievance redressal, partnerships," said Sugandh Saxena, chief executive officer of FACE.

In Q1 FY24, the average ticket size of a loan disbursed by FACE members was pegged at Rs 11,043. However, the ticket value differs based on segments and companies' products, the report said.

FACE is a self-regulatory body and was set up as a non-profit company in September 2020. Its members include Fibe, KreditBee, LazyPay, Niro and other companies.