The second issue of Fintech Lending Trends has brought some good news for the industry. The report has indicated that the industry is getting massive adoption across underserved customer segments due to strong customer preference, clarity in terms of lending, regularity support, and strong customer preference. 

The report issued by Fintech Association for Consumer Empowerment (FACE) and Equifax, revealed that the digital lending volumes and value have grown by 49 per cent and 21 per cent, respectively. At the same time, the 90 plus delinquency rate for the same has declined by 50bps. During FY 22-23, fintech lenders disbursed over 7.1 Crores of loans worth Rs 92,267 Cr in FY 22-23. 

Male customers are still dominant in the lending process and the share of female customers has only increased marginally to reach 14 per cent, reveals the report. 

Customers from Tier-3 cities have the largest share of digital loans by contributing 40 per cent of the disbursement value. On the other hand, Tier-2 cities share the digital loans at 35 per cent followed by 25 per cent. 

The report highlighted that the states of Maharashtra, Karnataka, Uttar Pradesh, Telangana, and Tamil Nadu are the top states for digital loans accounting for 50 per cent of the overall disbursement value in FY 22-23. Customers below 40 years contribute over 80 per cent of digital lending value. In addition, customers below the age of 25 accounted for the highest growth in disbursement value at 50 per cent from FY 21-22 to FY 22-23 

Personal loans dominate digital lending products accounting for 83 per cent in disbursement volume and 72 per cent in disbursement value. The market share of short-tenure loans (<6 months) increased by 25 per cent to make up 88 per cent of the total disbursement value, revealed the report.