Monetary Know-how corporations have witnessed a gentle improve in mortgage disbursal within the [past five years, according to a report by the Fintech Association for Consumer Empowerment (FACE).
The volume of personal loans disbursed increased from 1.1 million in the first half of FY 2018-19 to 41.6 million in the same period in FY 2024.
The value of loans surged to ₹40,845 crore from ₹5,907 crore during the same period.
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The average ticket size of these loans has reduced from ₹26,794 to ₹9,816 on the back of a higher volume of small ticket loans, the report added.
On loan delinquencies, the report said it constituted 3.6% of the total portfolio of the Fintech as of September 2023. The loan deliquency was 3.9% in March .2020
It must be noted that the analysis of the report was based on the 90-day loan delinquency rate.
West Bengal has the highest delinquency rate for digital loans at 4.3%, followed by Rajasthan (4%), Uttar Pradesh and Maharashtra (3.9%).
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Tamil stood at the lowest spot in the 90-day delinquency rate at 3.1%.
The outreach of fintech personal loans expanded to borrowers in tier-III cities and beyond. The share of tier-III cities and beyond rose to 45% as on September 30 from 25% in March 2019.
Medium-risk and low-risk customers constitute 59% of the fintech customer base.
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Further, metro cities and urban regions have lower loan default rates at 3.3% as compared to rural regions where the default rate was 4.1%, the report mentioned.
Female borrowers are less likely to default on loans at 3% compared to male borrowers at 3.7%.
Borrowers of fintech loans are majorly below 35 years. Around 49% of loan sanctions are less than ₹50,000.
The report comprised an analysis of personal loan data of 71 Fintech non-banking financial companies (NBFCs) from 2018 April to September 2023.
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Revealed: 22 Feb 2024, 02:37 PM IST
Supply: Live Mint