According to a report by the Fintech Association for Consumer Empowerment (FACE), financial technology or fintech lending companies doubled disbursements in FY 2021-22, giving out a total of 26.6 million number of loans worth Rs. 18,000 crore (US$ 2.32 billion).
Nearly three-fourth of the loan value disbursed by FACE member companies in FY 2021-22 was on their own balance sheet, with the remainder made in collaboration with other regulated entities, typically non-banking financial companies (NBFCs).
Maharashtra led the pack with 16% of disbursals, while the southern states collectively accounting for 44% of the uptake. Data also revealed that 98% of loans were classified as personal loans, which people take out for a variety of reasons, including business, emergencies, consumption, and education. Further, 80% of all loans disbursed were short-term loans with less than six-month loan tenure.
Males (90%), young (less than 30 years: 58%), educated (graduate and above: 79%), and low-income individuals (annual income less than Rs. 3 lakh or US$ 3,862.52: 61%) dominate the personal credit market segment, despite wide variation among lenders in terms of customer segments.
