Fintech loan disbursements decline in volume and value in Q1FY25: Report

For the first time in over four quarters, the volume and value of credit disbursements among fintech companies declined marginally on a quarter-on-quarter (Q-o-Q) basis, data from a self-regulatory organisation for fintechs (SRO-FT) show.

Disbursement volumes declined 0.75 per cent to 26.4 million disbursements in the first quarter of financial year 2025 (Q1FY25) compared to 26.6 million in Q4FY24.

However, on a year-on-year (Y-o-Y) basis, loans grew 14.8 per cent from 23 million disbursements in Q1FY24, data from the Fintech Association for Consumer Empowerment (FACE) show.

On a Q-o-Q basis, the value of disbursements slipped marginally to Rs 37,676 crore in Q1FY25 from Rs 39,580 crore in Q4FY24. On a Y-o-Y basis, disbursements grew 27.5 per cent from Rs 29,556 crore in Q1FY24.

The signs of a slowdown in disbursements come nearly one year after the Reserve Bank of India (RBI) hiked risk weights on unsecured loans.

In Q1FY25, the average ticket size of a loan was pegged at Rs 12,997.

“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. Data signal the industry's adaptability to overall macro conditions and alignment with the policy objectives,” said Sugandh Saxena, chief executive officer (CEO), FACE.

The report by FACE has data from 33 member companies lending to customers through their own non-banking financial companies (NBFCs) and those in partnership with other regulated entities (REs).