Digital lending disbursement volume up 31%, crosses 2.2 crore loans in Q1 FY24: Report

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The digital lending space continues has picked up pace in the first quarter of the financial year (Q1 FY24), with volumes recording annual growth of 31 per cent, while value rose 32 per cent, according to a report by the Fintech Association for Consumer Empowerment (FACE).

According to the association’s report, the member companies disbursed 2.2 crore loans during Q1 FY24, an increase of 31 per cent year-on-year and a 16 per cent increase over the previous quarter.

FACE has analysed disbursement data from 36 member companies.

Meanwhile, the disbursement value increased 32 per cent to ₹29,875 crore in Q1 FY24 from ₹22,682 crore in the same period last year.

Overall, the average ticket size in Q1 FY24 stood at ₹11,043, though there is considerable variation across companies.

Three-fourths of the companies reported positive annual growth over the comparable quarter in FY23, the report said.

Account aggregator

With the account aggregator framework shaping up, fintech lenders are quickly embracing it. More than a fourth of FACE member companies are already leveraging the AA framework, disbursing nearly 4 per cent of their loans through the same.

“As the industry marks the first anniversary of digital lending guidelines (DLG), we all draw much satisfaction in the way the industry is contributing to meet the credit needs of vast unaddressed segments, adapting extremely well to all the aspects of regulations – be it disclosures, data privacy/consent, transactions, grievance redressal, partnerships. As the fintech lending industry scales and innovates with a much larger, complex, and diverse supply side consisting of banks, NBFCs and LSPs, our new upgraded Code of Conduct put the industry in good stead by unifying the market practices around customer centricity and value creation,” said Sugandh Saxena, CEO at FACE.