Online Lending Sees 49% Surge to Rs 1.46 Lakh Crore in Fiscal 2024, Says Fintech Association
Fintech Association for Consumer Empowerment reported a 35% growth in the number of loans issued, surpassing 10 crore borrowings in fiscal 2024.
The Fintech Association for Consumer Empowerment reported a 49% increase in loan disbursements by its 37 member companies, totaling Rs 1.46 lakh crore in the fiscal year 2023-24. The number of loans issued grew by 35%, exceeding 10 crore.
The Reserve Bank of India has raised concerns about some lending practices and has drafted guidelines for these operations.
During the March quarter, businesses issued 2.69 crore loans worth Rs 40,322 crore, with an average loan amount of Rs 13,418. For the entire fiscal year, the average loan size was Rs 12,648.
FACE's CEO, Sugandh Saxena, stated that the digital lending sector focuses on customer-centricity, compliance, risk management, and sustainable business models.
Seventy percent of the disbursements came from 28 companies registered as non-banking finance companies or those with an in-house NBFC. These companies experienced a higher growth rate.
Companies raised Rs 1,913 crore in equity and Rs 16,259 crore in debt during the fiscal year. There was a drop in equity compared to 2022-23 for the companies that reported data.
Nine companies reported FLDG (first loss default guarantee) portfolios worth Rs 9,118 crore, with 94% of the portfolio value covered by FLDG arrangements ranging between 4-5%.
Additionally, 83% of the companies reported profitability, up from 76% in 2021-22.
