Digital Loans Disbursement: Amidst wide-ranging concerns about digital lending, the digital lending industry in India has witnessed exponential growth. According to the latest report by the Fintech Association for Consumer Empowerment (FACE) companies disbursed nearly 10.19 crore loans worth Rs 146,517 crore at an average ticket size of Rs 12,648.
As per the report, the number of loans disbursed grew by 35% to over 10 crore borrowings in FY24. The data showed that in the March quarter, companies disbursed 2.69 crore loans worth Rs 40,322 crore at an average ticket size of Rs 13,418. The average ticket size for loans disbursed in FY24 stood at Rs 12,648, against Rs 11,094 in FY23.
The body said that 70 % of the disbursements were by 28 companies, which are registered as non-banking finance companies (NBFCs) or have an in-house NBFC, and added that the growth rate of such companies is much higher. From 37 companies included in the report, 31 companies accounting for almost 90% of disbursement value in Q4 FY 23-24, reported an AUM of Rs 63,345 crore, equally distributed between on and off-balance sheets.
The growth rate has moderated with the rising scale and macro-developments compared to the previous year. On a year-over-year basis, during FY 23-24, volume and value increased by 35% and 49%, respectively, over FY 22-23.
This comes at a time when the Reserve Bank of India (RBI) has been public in expressing concerns about some of the practices adopted by such lenders and has also formulated draft guidelines for their operations.
Read Latest News: Tweaked Tax Rates, GST Relief For Platform Tickets: Here Are Key Takeaways From 53rd GST Council Meeting.
For 24 companies with in-house NBFCs, 79% of the AUM is on-balance sheet, with no remarkable change in the balance sheet composition over the last three years, according to the report.
The report highlighted that during the fiscal, Companies raised as much as Rs 1,913 crore in equity and Rs 16,259 crore in debt, adding that there was a decline in equity compared to FY23 for the entities who reported data.
Nine companies who reported data for FLDG (first loss default guarantee) posted 51 portfolios amounting to Rs 9,118 crore, with 94% of portfolio value having FLDG arrangements with coverage between 4-5%.
As per the data, compared to 76% companies in FY22, 83% of the companies said that they were profitable in FY 23-24.
