Fintech Companies Disburse 2.5 Crore Loans, FACE Report Reveals

Fintech companies have disbursed a whopping 2.5 crore loans during the third quarter of the fiscal year, marking a notable 12% increase compared to the previous year. Despite this growth, there has been a slight decrease from the previous quarter, as highlighted by the Fintech Association for Consumer Empowerment (FACE).

The total disbursement value surged by an impressive 46% to reach Rs 33,922 crore. The FACE report further disclosed that the average ticket size for these loans stood at Rs 11,945.

According to responses from 28 Non-Banking Financial Companies (NBFCs), 80% reported profitability during the first three quarters of FY23, showcasing an improvement from the previous fiscal year.

Notably, FACE, an industry body monitoring digital loans, emphasized that women only accounted for 12% of the disbursed loans, indicating a gender gap in loan participation and leadership roles.

CEO of FACE, Sugandh Saxena, expressed optimism regarding the industry’s performance, stating that members are adapting well to market conditions. Saxena also projected a significant milestone of reaching 10 crore loans in FY23-24. “The scale of 2.5 crore loans, nearing Rs 34,000 crore, reflects strong consumer trust and preference for digital loans,” Saxena added.

The report underscores the growing influence of fintech companies in the lending landscape, as they continue to cater to the evolving needs of consumers through digital solutions.