Updated March 20th, 2024 at 18:36 IST

Digital lending sees stable growth in Q3 FY 23–24: Report

The number of loans disbursed in Q3 FY 23–24 reached 2.5 crore, marking a 12% YoY increase.

Reported by: Business Desk
fintech companies | Image:Freepik
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Digital lending grows: The Fintech Association for Consumer Empowerment (FACE) in a quarterly report has said that the digital lending landscape in Q3 FY 23–24  has seen a steady uptick in disbursement volume and value, showcasing a robust growth trajectory. The report FACETS, based on data from 37 FACE member companies. 

According to the report, the number of loans disbursed in Q3 FY 23–24 reached 2.5 crore, marking a 12 per cent year-on-year increase. The total value of these loans amounted to Rs 33,922 crore, reflecting a substantial 46 per cent growth compared to the same period last year. Notably, this quarter's report includes insights into women's participation in digital lending as well as data on profitability for the first time.

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Sugandh Saxena, CEO of FACE, commented on the report, highlighting the industry's resilience and adaptability to market conditions. Saxena noted the industry's progress towards a significant milestone of 10 crore loans in FY 23–24, emphasising the strong consumer trust in digital lending platforms.

The report also revealed that 80 per cent of FACE member companies are profitable, up from two-thirds in the previous year. However, it noted a slight decline in loan disbursement growth compared to the previous quarter. Additionally, the average ticket size for loans in Q3 FY 23–24 was Rs 11,945, with notable variations among companies.

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Despite these positive trends, the report highlighted the need for greater inclusion of women in digital lending, as only 12 per cent of loans in FY 23–24 were disbursed to women. This underscores the industry's ongoing efforts to address gender disparities in access to financial services.

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Published March 20th, 2024 at 18:36 IST