Digital-Loan Disbursements Rise 43% In September Quarter
The report comes days after the RBI said that it will lay down a regulatory framework for web-aggregation of loan products.
The value of India's digital loan disbursements grew 43% to Rs 31,692 crore in the second quarter of the current financial year, the Fintech Association for Consumer Empowerment said on Tuesday.
There is a variation across companies regarding growth rate, with more than three-fourths reporting a growth over the same year-ago period, according to a report.
The report has assessed data from 37 FACE member companies lending to customers through their non-banking lenders and in partnership with other regulated entities. Out of those, 28 are non-banking financial companies or have in-house NBFCs.
The FACE report comes days after the Reserve Bank of India said last week that it would lay down a regulatory framework for web-aggregation of loan products in a move to enhance customer centricity and transparency in digital lending. The central bank has recently observed some concerns of loan products harming customers' interest.
The number of loan disbursements through digital channels rose 39% in the September quarter to nearly 2.44 crore. Growth rates vary significantly across companies due to multiple factors, including scale, segment focus and access to capital.
Overall, two-thirds of the companies reported a positive growth in disbursement volumes. The average ticket size for loans disbursed in the July–September period was Rs 10,591, according to the report.
The assets under management of 29 companies, which account for 86% of disbursement value in the first half of the fiscal, was Rs 36,169 crore. Out of this, 69% of the assets were on-balance sheet items and 31% as an off-balance sheet.
Consumer Grievance Redressal
The report underscored that credit bureau-related issues were the biggest reason for customer complaints, followed by app issues and disclosures.
The data is representative since 23 companies have provided customer complaints data for the first half. These entities make for over 80% of the nearly 3.9-crore loans disbursed during the period, the report said.
It pointed out that 41% of the complaints were resolved within a day and 97% within seven days.
