As younger borrowers drive digital loans, proportion of ‘borrowed for less than six months’ rises significantly
Personal loanstake the lead among digital lendingproducts, representing 72% in disbursement value.
- Share of Tier 3 cities in digital lending continues to rise.
- The proportion of short-duration loans (less than 6 months) has risen significantly.
The report has found that there's a slight increase in the share of very young
Proportion of short duration loans goes up
The proportion of short-duration loans (less than 6 months) has risen significantly, accounting for 88% of the total disbursement volume (for loans closed in FY 2022- FY 2023). Interestingly, a majority of customers opt for short-term digital loans, and many choose to pre-close their loans before the originally agreed tenure.
Also, the average ticket size of the fintech industry decreased by 19% in FY 2022- FY 2023 compared to FY 2021- FY2022, reaching ₹12,989.
Personal loans most sought after
Personal loans take the lead among digital lending products, representing 83% of the disbursement volume (approximately 6 crore loans) and 72% in disbursement value (around ₹66,432 crore).
Personal loans also experienced substantial growth, with a 46% increase in volume and a 35% rise in value from FY 2021- FY 2022 to FY 2022- FY 2023. Moreover,
Share of Tier 3 cities in digital lending continues to rise
Maharashtra, Karnataka, Uttar Pradesh, Telangana and Tamil Nadu were the top five states accounting for 50% of the disbursement.Share of Tier 3 cities share in digital lending continues to rise, constituting 40% of the total disbursement amount in FY 2022- FY 2023.
Meanwhile, Tier 1 cities have seen their share decrease to one-fourth in FY 2022- FY 2023 from over a third in FY 2021- FY 2022. Tier 3 has experienced the most significant Y-o-Y growth, increasing by 32% in the same period. Notably, in FY 2022- FY 2023, Bangalore Urban led in Tier 1, and Thane in Tier 2.
Popular on BI
- MrBeast called out TikTok for allowing a deepfake version of him hawking $2 iPhones to run wild on the app: 'This is a serious problem'
- How an OnlyFans creator earned $60,000 from a 'marathon' livestream
- TikTok's strategy for US dominance is straight out of Amazon's playbook — but creators are the fuel for its flywheel
- Travel Boom: India spends 2X of pre-pandemic level on Airbnb with Goa leading the charge
- Swiggy disburses over Rs 450 cr in loans to 8000 restaurant owners
- Hyundai Motor India says all its vehicles to come with 6 airbags
- Earthquake jolts Delhi and other parts of northern India
- World Bank pegs India's FY24 GDP growth at 6.3% as global headwinds emerge