The Fintech Association for Consumer Empowerment (FACE) member companies disbursed loans worth ₹31,692 crore during September quarter, indicating a 43 per cent annual increase, per a FACETS report.
Further, member-companies disbursed loan volumes exceeding 2.44 crore, a 39 per cent annual increase from the previous fiscal year and a 10 per cent quarter-on-quarter rise.
Digital lending, as a sector, showed positive growth in the September quarter of the current fiscal year, according to a report comprising 37 fintech companies.
Lending platforms Kreditbee, Fibe, Loantap and Vivriti Capital are members of FACE. The body has applied to the Reserve Bank of India for an SRO (self regulatory organisation) licence. The report estimated that around three crore loans were disbursed during the quarter by these 37 companies, of which 28 are either NBFCs themselves or have an inhouse NBFC.
Loan ticket size
The average ticket size of loans disbursed by fintech startups is around ₹10,000. The report noted that companies differed a lot in terms of their segmental focus and their average loan ticket size. Of the 37 companies, around 12 operate in the average ticket size range of ₹10,000-25,000.
In the first half of the current fiscal year, over 1 lakh complaints were received by fintech lenders, of which 99 per cent have been resolved. Most of the complaints were issues related to credit bureaus or apps. Of the complaints analysed, 8 per cent were over recovery issues.
“Data signals strong customer confidence in digital lending. It reflects digital lenders’ steadfast commitment to bringing vast unaddressed segments to formal credit with superior experience, choice and convenience. The regulatory foundation and fences are shaping the industry to grow and mature wholesomely, constantly investing and improving customer protection, underwriting models and portfolio quality,” Sugandh Saxena, CEO at FACE.