Fintechs see moderation in digital loan growth in Q2 FY25

While digital loans, worth Rs 36,897 crore being disbursed, reflected a 19 per cent year-on-year (YoY) rise over the same period in the previous year, it was a drop from the 44 per cent YoY growth registered in that quarter.

Bengaluru: Digital loans worth Rs 36,897 crore were disbursed by fintechs during the July to September quarter of the current financial year (Q2 FY25) as per a report by the Fintech Association for Consumer Empowerment (FACE) out on Tuesday, based on aggregated data from its 34 member companies.

While this reflected a 19 per cent year-on-year (YoY) rise over the same period in the previous year, it was a drop from the 44 per cent YoY growth registered in that quarter.

The disbursement volume, in the quarter under review, reached nearly 3 crore loans, driven by preference for digital lending, showing a 20 per cent YoY growth. On a sequential basis, disbursement volume grew by 13 per cent in Q2 over Q1 in FY25.

As of September 2024, the total assets under management (AUM) reported by 28 FACE member companies stood at Rs 51,537 crore. Of this, 74 per cent is on-balance and 26 per cent is off-balance.

The average loan size for the quarter was Rs 10,891.

The average ticket size bucket of Rs 10,000-25,000 was the most common, with 12 companies in that range accounting for 40 per cent of total disbursement value. Overall, there was significant variation amongst companies.

Meanwhile, in the April to October period (H1 FY25), member companies reported disbursing Rs 69,863 crore in loans. This is above the disbursement value of Rs 61,087 crore in H1 FY24.