Volume and value of loan disbursements decline marginally: Report
Data from a self-regulatory organisation for fintechs (SRO-FT) shows that for the first time in more than four quarters, the volume and value of lending by fintech companies fell slightly quarter-on-quarter.
Payout volumes declined 0.75 percent to 26.4 million payouts in the first quarter of financial year 2025 (Q1FY25), compared to 26.6 million in Q4FY24.
However, data from the Fintech Association for Consumer Empowerment (FACE) shows that loans rose 14.8 percent year-on-year from 23 million disbursements in the first quarter of fiscal 2024.
On a QoQ basis, the value of disbursements declined marginally to Rs 37,676 crore in Q1FY25 from Rs 39,580 crore in Q4FY24. On a YoY basis, disbursements grew 27.5 per cent from Rs 29,556 crore in Q1FY24.
The signs of a slowdown in disbursements come nearly a year after the Reserve Bank of India (RBI) raised risk weightings on unsecured loans.
In the first quarter of fiscal year 2025, the average loan size was Rs 12,997.
āMember companies are responsibly meeting customersā credit needs within the legal boundaries of customer protection and prudent risk management, thereby earning the trust of customers and stakeholders. Data indicates that the sector is able to adapt to the overall macro environment and is aligned with policy objectives,ā said Sugandh Saxena, CEO of FACE.
The FACE report includes data from 33 member companies that provide loans to customers through their own non-banking financial institutions (NBFCs) and through collaboration with other regulated entities (REs).
First publication: Sep 25, 2024 | 6:43 PM IST