Digital lenders disburse 2.64 Cr loans worth Rs 37,676 Cr in Q1, as per FACETS report
FinTech BizNews Service
Mumbai, 25 Sep 2024: Fintech Association for Consumer Empowerment (FACE), an RBI-recognised Self-Regulatory Organization in the Fintech sector (SRO-FT), released the 11th issue of its quarterly report, FACETS. This report captures disbursement trends from 33 FACE members for Q1 FY 24-25. The disbursement volume and value grew YoY by 15% and 27%, respectively, reaching 2.64 Cr loans totalling Rs 37,676 Cr.
Commenting on the eleventh edition of FACETS, Sugandh Saxena, CEO at FACE, said, “The data affirms strong customer demand for digital credit and its pivotal role towards the country’s financial inclusion. Member companies responsibly meet customers' credit needs within the regulatory guardrails of customer protection and prudent risk management, earning the trust of the customers and stakeholders. Data signals the industry's adaptability to overall macro conditions and alignment with the policy objectives.”
Some of the key insights from the report are as follows:
Disbursement volume grew by 15%: In Q1 FY 24-25, member companies disbursed over 2.6 Cr loans, a 15% YoY increase from Q1 FY 23-24. However, disbursement volume declined by a marginal 1% compared to Q4 FY 23-24, with 60% of companies reporting QoQ decreases. Eleven companies with quarterly disbursements over 5 Lakhs contributed 93% of the total volume.
Disbursement value grew by 27%: In Q1 FY 24-25, member companies disbursed Rs 37,676 Cr, marking a 27% YoY increase from Q1 FY 23-24. However, this represents a 5% decrease from Q4 FY 23-24, with nearly half of the companies reporting a decline in disbursement owing to seasonal trends.
The average ticket size is Rs 12,997: The average ticket size for loans disbursed in Q1 FY 24-25 is Rs 12,997, a 16% increase from Q1 FY 23-24.
Growth trends across companies: 55% of companies reported growth in volume and 80% in value in Q1 FY 24-25 over Q1 FY 23-24. About half the companies reported QoQ degrowth in disbursement volume and value in Q1 FY 24-25 over Q4 FY 23-24
54% of loans disbursed are through own/in-house NBFCs: 54% of loans disbursed in Q1 FY 24-25 are through own/in-house NBFCs. For companies who are/own NBFCs, nearly two-thirds of loan value disbursed is through own/in-house NBFCs.
AUM of Rs 47,362 Cr is recorded: Of the 33 companies in this report, 27 (about 80% of Q1 FY 24-25 disbursement value) reported an AUM of Rs 47,362 crore as of Jun 2024. Of this, 68% is on-balance and 32% off-balance. For the 21 companies with NBFCs, 72% of their AUM is on-balance, while 28% is off-balance. Among the 27 companies, 10 have AUM exceeding Rs 1,000 Cr, 5 are in the Rs 500-1,000 Cr range, 5 fall between Rs 100-500 Cr, and 7 have AUM below Rs 100 Cr.
