Personal loans remain the dominant Fintech product, accounting for 96% of the total disbursement volume: Equifax and FACE

• 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.

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.”

Says Sugandh Saxena, CEO at FACE, "A robust regulatory framework for digital lending safeguarding customer interests and concerted actions to address illegal digital lending apps create a much favorable ecosystem for digital lending. Data from the report validates the fintech lending role in distributing ‘sachet loans’ to the mass market and bringing them to the formal credit fold, expanding their credit footprint. Looking at the developments this financial year, including multi-fold business growth, the industry is in good spirits to be a force of good in our customer’s journey for progress with roots nurtured with inclusion, innovation, customer-centricity and compliance.”

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