PriyaPatelTLDR:
- Fintech firms disbursed 2.5 crore loans in Q3, an increase of 12% compared to a year ago.
- Disbursement value increased 46% to reach Rs 33,922 crore.
A recent report by the Fintech Association for Consumer Empowerment (FACE) revealed that fintech companies disbursed 2.5 crore loans during the third quarter of the fiscal year, marking a 12% increase compared to the previous year. The disbursement value also saw a significant rise of 46% to reach Rs 33,922 crore. Additionally, the average ticket size for loans disbursed was reported at Rs 11,945.
The report highlighted that based on responses from 28 Non-Banking Financial Companies (NBFCs), 80% were profitable in the first three quarters of FY23, as opposed to 68% in FY 22-23. The findings also revealed that women accounted for 12% of the loans disbursed, with their participation in leadership roles being comparatively lower.
Sugandh Saxena, the CEO at FACE, stated that quarterly trends indicate that members are adapting well to market conditions, with the industry on track to achieve the milestone of 10 crore loans in FY 23-24. Saxena also emphasized that the scale of 2.5 crore loans disbursed, nearing Rs 34,000 crore, reflects strong consumer trust and preference for digital loans.
The report sheds light on the impressive growth and profitability of fintech firms in the digital lending space, showcasing an increasing consumer reliance on digital loans and the potential for further expansion and innovation within the sector.
