Fintech personal loan disbursal doubles in 5 years, defaults drop: Report

livemint.com:

₹40,845 crore from ₹5,907 crore during the same period. The slow burn of bankruptcy filings may be about to end The average ticket size of these loans has reduced from ₹26,794 to ₹9,816 on the back of a higher volume of small ticket loans, the report added. On loan delinquencies, the report said it constituted 3.6% of the total portfolio of the Fintech as of September 2023.

The loan deliquency was 3.9% in March .2020 It must be noted that the analysis of the report was based on the 90-day loan delinquency rate. West Bengal has the highest delinquency rate for digital loans at 4.3%, followed by Rajasthan (4%), Uttar Pradesh and Maharashtra (3.9%). MF industry’s shareholding in Paytm increased by 41% in January 2024: Fisdom Tamil stood at the lowest spot in the 90-day delinquency rate at 3.1%.

The outreach of fintech personal loans expanded to borrowers in tier-III cities and beyond. The share of tier-III cities and beyond rose to 45% as on September 30 from 25% in March 2019. Medium-risk and low-risk customers constitute 59% of the fintech customer base.

Paytm's loss is BharatPe, PhonePe, MobiKwik and other fintechs' gain Further, metro cities and urban regions have lower loan default rates at 3.3% as compared to rural regions where the default rate was 4.1%, the report mentioned. Female borrowers are less likely to default on loans at 3% compared to male borrowers at 3.7%. Borrowers of fintech loans are majorly below 35 years.