Latest News

Fintech Companies have disbursed 41 million Loans digitally, Check Data here


➡️ Click here to join our Whatsapp Group

Financial Technology (Fintech) companies have seen a steady rise in loan distribution over the past five years. This information comes from a report by the Fintech Association for Consumer Empowerment (FACE).

Increase in Loan Disbursal Volume

  • Personal loan distribution has increased significantly.
  • In the first half of the fiscal year (FY) 2018-19, 1.1 million loans were given out.
  • By the same period in FY 2024, this number rose to 41.6 million loans.

Growth in Loan Value

  • The total value of loans surged from ₹5,907 crore to ₹40,845 crore during this period.

Changes in Average Loan Size

  • The average loan size decreased from ₹26,794 to ₹9,816.
  • This reduction is due to more small-sized loans being distributed.

Loan Delinquency Rates

  • Loan delinquency, which means late or missed payments, stood at 3.6% of the total portfolio as of September 2023.
  • In March 2020, this rate was 3.9%.
  • Analysis was based on a 90-day delinquency rate.

Regional Delinquency Rates

  • West Bengal has the highest delinquency rate for digital loans at 4.3%, followed by Rajasthan (4%), Uttar Pradesh, and Maharashtra (3.9%).
  • Tamil Nadu has the lowest rate at 3.1%.

Expansion to Tier-III Cities and Beyond

  • Fintech personal loans are now reaching borrowers in smaller cities.
  • The share of tier-III cities and beyond in loan distribution rose to 45% by September 30 from 25% in March 2019.

Customer Base and Risk Analysis

  • Medium-risk and low-risk customers make up 59% of the fintech customer base.

Loan Default Rates Across Regions

  • Metro cities and urban areas have lower loan default rates at 3.3% compared to rural regions at 4.1%.

Gender and Age Analysis

  • Female borrowers are less likely to default on loans (3%) compared to male borrowers (3.7%).
  • Majority of fintech loan borrowers are below 35 years old.
  • Around 49% of loan sanctions are less than ₹50,000.

Data Analysis Details

  • The report analyzed personal loan data from 71 Fintech non-banking financial companies (NBFCs) from April 2018 to September 2023.

Leave a Reply

Your email address will not be published. Required fields are marked *

Home
Calculators
Menu
Search