Digital lenders in India handed over loans worth 37,676 crore in the first quarter of FY 2024-25

New Delhi| 2.64 crore loans worth Rs 37,676 crore have been disbursed by Digital Lenders in the first quarter of FY 2024-25. It has seen an increase of 15 percent in volume and 27 percent in value on an annual basis. According to data released by the Fintech Association for Consumer Empowerment (FACE), the average ticket size of the loan in the June quarter of FY 2024-25 stood at Rs 12,997. Compared to the first quarter of FY 2023-24, there was an increase of 16 percent on an annual basis. Data shows that demand for digital credit remains strong. Financial inclusion plays a big role in this.

“Member companies have met the credit needs of customers through consumer guidelines and prudent RICS management and have been successful in winning the trust of customers and all stakeholders”, said Sugandh Saxena, CEO, FACE. The report reported that 11 companies had disbursed more than 5 lakh loans in the April-June period. They have accounted for 93 per cent of the total volume.

The first quarter of the current financial year has seen an increase in the volume of about 55 percent of companies on an annual basis. At the same time, an increase in the value of 80 per cent has been seen during this period. Of the 33 companies included in the report, 27 companies had an Assets Under Management (AUM) of Rs 47,362 crore as of June 2024, which is 80 per cent of the value of total loans disbursed.

Among these 27 companies, 10 have an AUM of more than Rs 1,000 crore. Five have an AUM of Rs 500 to 1,000 crore, five have Rs 100 to 500 crore, seven have less than Rs 100 crore. FACE is a self-regulatory organization recognized by the Reserve Bank of India in the Fintech sector.