 "rupee, loan, indian rupee")
Fintech lenders' disbursements grew two and half times year-on year (YoY) to Rs 92,848 crore in the financial year ended March 2023 (FY23), reflecting strong demand amid economic growth.
Disbursements were Rs 35,940 crore in FY22 and Rs 13,461 crore in FY21. Fintech Association for Consumer Empowerment (FACE) said in a statement that given the low base and huge demand, the digital lending industry remains in an expansive phase. Growth in disbursement value improved though the pace slowed in the second half of FY23.
FACE said member companies reported a disbursement volume, or the number of loans, of 72.6 million in FY23. The number was 31 million in FY22, when the impact of Covid-19 was still present. The volumes reflect the potential of digital lending to provide unsecured loans for inclusive economic growth, said FACE, which represents digital lenders.
After expanding strongly in the first half of FY23, disbursement volume de-grew in the third quarter and then moved to positive territory in the last quarter. The drop is a function of variable factors, including companies moving to different market segments, increasing ticket size and focusing on regulatory changes, said FACE.
Quarterly volumes showed a 24 per cent rise in Q1 FY23 over Q4 FY23. They grew 38 per cent in Q2 FY23 over Q1 FY23. Volumes decreased by 10 per cent in Q3 FY23 over Q2 but again moved in positive territory in the fourth quarter with 4.0 per cent over Q3 FY23.
Loan disbursements (by value) increased from Rs 13,291 crore in Q4 FY22 to Rs 16,468 crore in Q1, Rs 20,262 crore in Q2, Rs 21,459 crore and 27,659 crore in Q4Fy23.
There is significant variation in ticket sizes across companies serving different customer needs and market segments. Ticket sizes have hovered overall been in the range of Rs 10,000-12,000. There is a great deal of variation across companies in terms of ticket size, said FACE.
