Fintechs lead small-ticket loans’ volume with 77% market share: Study

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Illustration: Ajay Mohanty


Fintech companies in the country have seen an uptick in the volume and value of small-ticket loans disbursed over the past six years, data from a joint report by Experian India and the Digital Lenders Association of India (DLAI) shows. 


In financial year 2018 (FY18), fintechs accounted for 50 per cent of the loan volumes disbursed with a ticket size less than Rs 1,00,000. In the same category, their market share has expanded to 77 per cent in FY24 (till September 2023). 


On the value front, fintechs cornered 29 per cent of small ticket loans disbursed in FY18, which rose to 51 per cent in FY24 (till September 2023). 


Meanwhile, the average ticket size for lenders in the personal loans category in FY24 (till September 2023) was pegged at Rs 11,576. 

 

The report further added that the personal loan portfolio size at end of September 23 stands at around Rs 81,000 crore. Non-banking financial companies (NBFCs) own 34 per cent share of the pie, followed by fintech companies owning 33 per cent of the market. 

Ticket size distribution across lenders


 
<10,000
10,000-50,000
50,000-1,00,000
>1,00,000

Fintechs
75
21
2
2

Fintech-enabled
57
40
4
–

NBFCs
20
28
20
32

Private banks
~1
12
16
71

Public Sector Banks
–
2
9
89


Market share of lenders by volume (in %)


 
FY18
FY19
FY20
FY21
FY22
FY23
FY24 (till September 2023)

Fintechs
50
65
75
75
63
76
77

Fintech-enabled
7
3
3
5
13
13
11

NBFCs
23
24
18
13
20
8
9

Private banks
11
4
3
2
2
2
2

Public Sector Banks
9
4
1
4
2
1
1




Market share of lenders by value (in %)


 
FY18
FY19
FY20
FY21
FY22
FY23
FY24 (till September 2023)

Fintechs
29
34
42
39
38
47
51

Fintech-enabled
4
4
6
8
13
14
12

NBFCs
34
40
32
24
32
25
25

Private banks
18
11
14
10
10
9
8

Public Sector Banks
14
11
6
20
7
5
3




Source: Experian India- DLAI whitepaper

First Published: Mar 17 2024 | 11:21 PM IST