Mumbai, Amid widespread concerns about digital lending, an industry body on Tuesday said its 37 member institutions saw a 49 per cent rise in disbursements to Rs 1.46 lakh crore in the financial year 2023-24.
According to the Fintech Association for Consumer Empowerment (FACE), the number of loans disbursed increased by 35 per cent to over Rs 10 crore in FY24.
It may be noted that the Reserve Bank has made public its concerns over certain practices adopted by such lenders, and has also prepared draft guidelines for their operation.
“The digital lending sector is growing responsibly with a focus on customer-centricity, compliance, risk management and sustainable business models,” Sugandh Saxena, chief executive of FACE, said in a statement.
In the March quarter, companies disbursed 2.69 crore loans worth Rs 40,322 crore at an average ticket size of Rs 13,418. According to data shared by the industry body, the average ticket size of loans disbursed was Rs 12,648 in FY2014, while it was Rs 11,094 in FY2013.
The body said 70 per cent of the disbursements were made by 28 companies which are registered as non-banking finance companies or have in-house NBFCs and said the growth rate of such companies is very high.
Companies raised Rs 1,913 crore in equity and Rs 16,259 crore in debt during the fiscal year, it said, adding that there was a decline in equity compared to FY23 for companies that reported data.
The nine companies reporting data for FLDG (First Loss Default Guarantee) reported 51 portfolios worth Rs 9,118 crore, of which 94 per cent of the portfolio value had FLDG arrangements with coverage between 4-5 per cent.
The data also said that 83 percent of the companies reported that they were profitable, whereas in FY22 this figure was 76 percent.
According to the Fintech Association for Consumer Empowerment (FACE), the number of loans disbursed increased by 35 per cent to over Rs 10 crore in FY24.
It may be noted that the Reserve Bank has made public its concerns over certain practices adopted by such lenders, and has also prepared draft guidelines for their operation.
“The digital lending sector is growing responsibly with a focus on customer-centricity, compliance, risk management and sustainable business models,” Sugandh Saxena, chief executive of FACE, said in a statement.
In the March quarter, companies disbursed 2.69 crore loans worth Rs 40,322 crore at an average ticket size of Rs 13,418. According to data shared by the industry body, the average ticket size of loans disbursed was Rs 12,648 in FY2014, while it was Rs 11,094 in FY2013.
The body said 70 per cent of the disbursements were made by 28 companies which are registered as non-banking finance companies or have in-house NBFCs and said the growth rate of such companies is very high.
Companies raised Rs 1,913 crore in equity and Rs 16,259 crore in debt during the fiscal year, it said, adding that there was a decline in equity compared to FY23 for companies that reported data.
The nine companies reporting data for FLDG (First Loss Default Guarantee) reported 51 portfolios worth Rs 9,118 crore, of which 94 per cent of the portfolio value had FLDG arrangements with coverage between 4-5 per cent.
The data also said that 83 percent of the companies reported that they were profitable, whereas in FY22 this figure was 76 percent.
