Digital lenders’ loan disbursals up 27% to Rs 37,676 crore in Q1 FY25

India saw a 27 per cent surge in loans disbursed by digital lenders in the first quarter of the fiscal year 2024-’25 (Q1 FY25). The surge saw the amount of loans by digital lenders rise to Rs 37,676 crore, according to a report by Fintech Association for Consumer Empowerment (FACE), a Self-Regulatory Organisation in the Fintech (SRO-FT) sector with recognition from the Reserve Bank of India.

Eleven companies with quarterly disbursements of more than Rs 5 lakh contributed 93 per cent of the loan volume during the period. In-house Non-Bank Financial Companies (NBFCs) disbursed 54 per cent of digital loans during the period analysed by the report.

In terms of volume, loans disbursed during the Q1 FY25 period (April to June 2024) saw a 15 per cent increase on a year-on-year basis.

In terms of ticket size for loans in the first quarter of the fiscal year 2024-’25, there was a surge of 16 per cent in comparison to the fourth quarter of the previous fiscal year (Q1 FY24). Loan disbursals amounted to Rs 12,997.

The report is based on inputs from 33 companies that are members of FACE. Of these 27 companies — which constitutes nearly 80 per cent of member firms — said they had assets under management worth Rs 47,362 crore as of June 2024.

While the report indicates a robust consumer demand for digital loans in Q1 FY25, around 50 per cent of lenders cited seasonal trends as reason for a 5 per cent slump in loans disbursed during the period when compared to Q4 FY24.

In terms of volume, disbursement of loans saw a drop of 1 per cent compared to Q4 FY24. More than 60 per cent companies analysed by FACE said that they had experienced sequential decrease.