Digital lenders disbursed 1.8 crore loans worth around Rs 18,537 crore in Q3FY23, up 147 per cent year-on-year in terms of volume and 118 per cent in terms of the value of loans.
In the year-ago period, 74 lakh loans worth Rs 8,520 crore were disbursed, according to the Fintech Association for Consumer Empowerment (FACE), whose member companies comprise over 50 per cent of the digital lending market.
For the nine-month period ended December, the member companies disbursed over 5 crore loans worth around Rs 51,000 crore.
However, on a sequential basis, the growth in disbursements was muted with loan volumes rising by 6 per cent, and the value of digital loans by just 2 per cent on quarter. In the previous quarter, loan volumes grew 21 per cent and the value of loans by 23 per cent.
Two-thirds of the 29 member companies registered positive growth rates in Q3FY23 over the previous quarter. However, more than half reported slower sequential growth rate.
The average ticket size of loans declined by 10 per cent on year to Rs 12,985 from Rs 14,275 in the year-ago period. At an aggregate level, excluding outliers at the extreme ends of low and high ticket sizes, the average loan ticket hovered around Rs 12,000 during FY23.
“Average ticket sizes, however, significantly vary amongst companies due to the different focus on products and customer segments, and associated risk profiles. We also see upward and downward movements in ticket size, as companies evolve with products and customer segments,” the report said.
The spread on processing fees charged by digital lenders ranged between 1.6 per cent and 6.2 per cent, while the interest rate spread was between 15.2 per cent and 37.0 per cent.