Despite facing regulatory challenges, fintech lenders continue to expand the credit penetration with loan disbursements growing more than 60% in one year. A report released by credit bureau Equifax and fintech industry body Fintech Association for Consumer Empowerment (FACE) shows that digital lenders disbursed Rs 28,247 crore between the April to September 2022 period totalling to 2.74 crore loans. In comparison, digital lenders had disbursed loans worth Rs 17,414 crore during the April to September 2021 period.
Personal loans remained the dominant product accounting for 96% of the volume. However, given the difference in ticket size across products, it accounted for 66% of the value. Andhra Pradesh, Tamil Nadu, Telangana, Maharashtra and Karnataka accounted for 54% of the total digital lending loans.
