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Digital Lenders Disburse Loans Worth Rs 37,676 Cr In Q1FY24-25

BW Online Bureau Sep 26, 2024

This report captures disbursement trends from 33 Face members for Q1FY 24-25 and reveals that the disbursement volume and value grew YoY by 15 per cent and 27 per cent, respectively

Highlighting the digital lending sector’s key role in credit expansion, a report by the Fintech Association for Consumer Empowerment (Face) has revealed that digital lenders disbursed 2.64 crore loans worth Rs 37,676 crore in Q1FY 24-25.

In Q1FY 24-25, member companies disbursed over 2.6 crore loans, a 15 per cent YoY increase from Q1FY23-24. However, the report mentioned that the disbursement volume declined by a marginal 1 per cent compared to Q4FY23-24, with 60 per cent of companies reporting quarter-on-quarter (QoQ) decreases. Eleven companies with quarterly disbursements over 5 lakhs contributed 93 per cent of the total volume.

In Q1FY24-25, member companies disbursed Rs 37,676 crore, marking a 27 per cent YoY increase from Q1FY23-24. However, this represents a 5 per cent decrease from Q4FY23-24, with nearly half of the companies reporting a decline in disbursement owing to seasonal trends. According to the report, the average ticket size is Rs 12,997: The average ticket size for loans disbursed in Q1FY24-25 is Rs 12,997, a 16 per cent increase from Q1 FY 23-24.

Growth Trends Across Companies
The report stated that 55 per cent of companies reported growth in volume and 80 per cent in value in Q1FY24-25 over Q1FY23-24. About half the companies reported QoQ degrowth in disbursement volume and value in Q1FY24-25 over Q4FY23-24

A total of 54 per cent of loans disbursed in Q1FY24-25 are through own/in-house NBFCs. For companies who are/own NBFCs, nearly two-thirds of loan value disbursed is through own/in-house NBFCs. It added that of the 33 companies in this report, 27 (about 80 per cent of Q1 FY24-25 disbursement value) reported an AUM of Rs 47,362 crore as of Jun 2024. Of this, 68 per cent is on-balance and 32 per cent off-balance.

For the 21 companies with NBFCs, 72 per cent of their AUM is on-balance, while 28 per cent is off-balance. Among the 27 companies, ten have AUM exceeding Rs 1,000 crore, five are in the Rs 500-1,000 crore range, five falls between Rs 100-500 crore, and seven have AUM below Rs 100 crore.