Digital loans up 49% in FY24 by value, Rs 1.46 lakh cr disbursed: Industry body
disbursements at Rs 1.46 lakh crore in financial year 2023-24. According to Fintech Association for Consumer Empowerment (FACE), the number of loans disbursed grew by 35 per cent to over 10 crore borrowings in FY24.
It can be noted that the Reserve Bank has been public with its concerns on some of the practices adopted by such lenders, and has also formulated draft guidelines for their operations.
«The digital lending sector is responsibly driving ahead with a sharp focus on customer-centricity, compliance, risk management and sustainable business models,» FACE's chief executive Sugandh Saxena said in a statement
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, as compared to Rs 11,094 in FY23, the data shared by the industry body said.
The body said that 70 per cent of the disbursements were by 28 companies, which are registered as non-banking finance companies or have an in-house NBFC and added that the growth rate of such companies is much higher.
Companies raised Rs 1,913 crore in equity and Rs 16,259 crore in debt during the fiscal, it said, adding that there was a drop in equity compared to FY23 for the companies who reported data.
Nine companies who reported data for FLDG (first loss default guarantee) reported 51 portfolios worth Rs 9,118 crore, with 94 per cent of portfolio value having FLDG arrangements with coverage between 4-5 per cent.
The data also said
