Digital lenders disbursed 2.74 crore loans worth ₹28,247 crore in H1FY23 of which 96 per cent were personal loans, reported Business Line.
Personal loans comprised 66 per cent of the loan value disbursed, with a majority of the loans given being under ₹5,000.
The average ticket size for the segment was ₹7,094, whereas for consumer loans was ₹57,528 and for business loans was ₹4.8 lakh.
Digital loan disbursements for the six-month period ended September 2022 were 153 per cent higher year-on-year in terms of the volumes of loans and 62 per cent higher in terms of the value of loans.
The average ticket size of the loans was ₹10,313, lower than ₹16,087 in the year ago period and ₹16,250 in the year prior to that.
Consumer durables loans between ₹5,000 and ₹10,000 had witnessed nearly five-fold growth between April 2021 and April 2022, the report said.
The report covers a cohort of 95 Fintech-NBFCs that largely operate in the digital lending space.
Maharashtra, Karnataka, Telangana, Tamil Nadu and Andhra Pradesh were the top five States in terms of digital lending, accounting for 54 per cent of the total disbursement value. Andhra Pradesh saw the highest growth in digital borrowing at 87 per cent, followed by Telangana at 67 per cent.
A robust regulatory framework for digital lending safeguarding customer interests and concerted actions to address illegal digital lending applications has create a much favorable ecosystem for digital lending.
“Data from the report validate the fintech lending role in distributing ‘sachet loans’ to the mass market and bringing them to the formal credit fold, expanding their credit footprint,” said CEO Sugandh Saxena.
The portfolio quality of digital loans, as per 90 days past due (90+ dpd) was 4.14 per cent at an aggregate industry level, with the performance of business and consumer loans being better than personal loans, the report said.