Fintech lending grows 31% to Rs 29,875 crore in Q1FY24: FACE report
Member companies of the Fintech Association for Consumer Empowerment (FACE) disbursed 22.2 million loans in Q1FY24, growing 30.6 per cent year-on-year from 17 million loans in Q1FY23, as per data from the seventh edition of FACE’s report.
On a quarter-on-quarter basis, disbursals grew 15.6 per cent from 19.2 million loans in Q4FY23.
In terms of the value of loans disbursed, member companies disbursed loans amounting to Rs 29,875 crore in Q1FY24, a 31.7 per cent Y-o-Y increase, from Rs 22,682 crore in Q1FY23.
The value of loans disbursed grew marginally at 7.4 per cent on a quarterly basis from Rs 27,806 crore in Q4FY23.
The FACE report includes data from 36 member companies lending to customers through their own non-banking financial corporations (NBFCs) through partnership with other regulated entities.
The report added that nine companies with a disbursement value of over Rs 1,000 crore in Q1FY24 accounted for 81 per cent of the total disbursement value.
“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,” said Sugandh Saxena, chief executive officer at FACE.
In Q1FY24, the average ticket size of a loan disbursed by FACE members was pegged at Rs 11,043, the report said.
However, the value of ticket sizes differ from company to company based on their product and segment focus, the report noted.
Members at FACE include fintech companies such as Fibe, KreditBee, LazyPay, Niro, among others.
FACE is an industry association and a self-regulatory body for fintech lenders set up as a non-profit company in September 2020.