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Digital Loan Disbursals By Fintechs Jumps 216% To Rs 14,016 Crore In Q2 2022

The total disbursement volume increased to 1.63 crore in Q2 2022 from 65.56 lakh in the same period last fiscal

Digital Loan Disbursals By Fintechs Jumps 216% To Rs 14,016 Crore In Q2 2022
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POSTED ON November 29, 2022 7:43 PM

The Fintech Association for Consumer Empowerment (FACE), an association for fintech or digital lending companies, has published the fourth edition of the FACETS Report. This survey analyses loan disbursement trends of digital lenders that represent more than 50 per cent of the digital lending space.

According to the FACETS report, the value of digital loan disbursals in the second quarter of the current financial year recorded an increase of 216 per cent compared to the same period last year. The volume of loans disbursed jumped 149 per cent growth over the last year. The total value of loans disbursed by digital lending platforms amounted to Rs 14,016 crore in the second quarter of this financial year, compared to Rs 4,435 crore in the year-ago period. 

The total disbursement volume increased to 1.63 crore in Q2 2022 from 65.56 lakh in the same period last fiscal. 

The FACETS report stated that the average ticket size of loans in the current fiscal was around Rs 12,000. This average ticket size also saw an increase, albeit a marginal one, from Rs 11,815 in the same period last year.

Sugandh Saxena, chief executive officer at FACE, said, “The credit expansion witnessed this quarter demonstrates that the fintech industry is seizing unmatched opportunities to contribute to financial inclusion and an inclusive economy. The fintech lending industry is accelerating customers’ access to credit with more loans. Implementation of the Reserve Bank of India (RBI’s) digital lending policies brings tailwinds for the industry as it sets clear rules and standards, boosting the confidence of the customers, fintech lenders and other market participants.” 

He also felt that proactive efforts by multiple stakeholders to crack down on dubious lending apps are improving the ecosystem with greater customer trust and expanding the market for legitimate players. "There is no doubt that the fintech lending industry will move forward with confidence to create innovative customer journeys coalescing customer protection,” he added.

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