Fintech Association for Consumer Empowerment (FACE), an industry body for digital lenders, said in the ninth edition of its FACETS report that its member companies disbursed loans amounting to ₹33,922 crore in the third quarter of financial year 2024, which is a 46 per cent year-on-year (Y-o-Y) increase from Q3 FY23.
The companies disbursed around 2.5 crore loans in Q2 FY24, marking a 12 per cent Y-o-Y growth in volume from 17.5 million loans in Q2 FY23. According to the report, 12 per cent of loans disbursed during April to December 2023 went to women. Women account for barely a third of the workforce, and even less at the leadership level.
Besides capturing women’s participation in digital lending, the report presents data on profitability for the first time.
“Quarterly trends inform us that FACE members are adapting well to the market conditions. The scale of 2.5 crore loans, nearing ₹34,000 crore, reflects strong consumer trust and preference for digital loans. The industry is on the path to the remarkable milestone of 10-crore loans in FY23-24, which is no small feat. The scale propels the industry to the next growth stage with a well-rounded focus on compliance, risk management and profitability. The white spaces in women’s participation in digital lending present a new horizon for inclusion,” said Sugandh Saxena, CEO, FACE.
Meanwhile, in Q3 FY24, on an aggregated level, the average loan size was ₹11,945, though it varied across companies.
As of December 2024, the total asset under management (AUM) was ₹41,220 crore, with a two-third portfolio on-balance sheet. For fintech companies that have non-banking financial companies, 76 per cent of AUM is on-balance, and 24 per cent is off-balance.
According to the report, 28 members, namely 80 per cent, are profitable, compared to two-thirds in the past year.
The FACETS report has data from 37 member companies, which lend through their NBFCs and in partnership with other regulated entities (mostly NBFCs).