Personal loans remain the dominant Fintech product, accounting for 96% of the total disbursement volume: Equifax and FACE
Feb 28, 2023, 18:02 IST
- The highest number of personal loans are disbursed in less than ₹5,000 ticket size.
- Digital loan disbursements continue to rise - disbursement volumes grew by a whopping 153% over the last year.
- In consumer durable loans, loans of ticket sizes between ₹5,000- ₹10,000 witnessed the highest growth of 493% from April 2021 to April 2022.
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In the first half of the current financial year, digital lenders disbursed a total of ₹2.74 crore loans through their balance sheet according to a Fintech Lending Report by Equifax Credit Information Services Private Limited (ECIS), a leading credit bureau, along with Fintech Association for Consumer Empowerment (FACE), an industry association and self-regulatory body for fintech lenders. Digital loan disbursements continue to rise and disbursement volumes grew by a whopping 153% over the last year with the disbursement value growing by 62%. The Fintech Lending Trends report uncovers the lending patterns for the fast-moving fintech lending industry. It aims to contribute to market players making informed decisions and expanding prudently and responsibly.
Personal loans remain the dominant product, accounting for 96% of the total disbursement volume and 66% of the total value. The highest number of personal loans are disbursed in less than ₹5,000 ticket size. When it comes to consumer durable loans, loans of ticket sizes between ₹5000-₹10,000 witnessed the highest growth of 493% from April 2021 to April 2022.
Maharashtra, Karnataka, Telangana, Tamil Nadu and Andhra Pradesh are the top five states for digital loans accounting for a total of 54% of the total disbursement value. Andhra Pradesh and Telangana see the highest growth of digital borrowing at 87% and 67%, respectively.
Nanaiah Kalengada, managing director, ECIS and country leader - India & MEA, Equifax, says, "Fintech lending industry in India has gained significant importance in recent years due to providing access to credit to a larger population and offering alternative borrowing options to the customers.”
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