Consumer and Personal Lending Boosted Fintech Lending in FY2021: Report
SIDBI and Equifax have launched the second edition of Fintech Pulse, a quarterly publication that highlights key trends in the rapidly growing NBFC (Non-Banking Financial Company) fintech segment.
“Fintech Pulse” aims to provide insights into trends in the Indian fintech industry – from payouts and defaults to the fastest growing states and top loan categories.
* Consumer and personal loans continue to be strong for NBFC fintechs, accounting for 87 percent of active loans
* The value of outstanding portfolios is up 38 percent year over year, with personal loans increasing while business loans declining in value
* Despite the growth, the average ticket size for consumer and personal credit has decreased by more than 40 percent to less than Rs 9,000
* Payouts for personal loans are down 71 percent year over year
* Across the industry, NBFC fintechs have a 2.44 percent market share in corporate loans by number of active loans and 1.2 percent by outstanding portfolios
* Business loan disbursements by all types of lenders declined after the pandemic began, but recovered from the April-June 2020 quarter for public banks
* 90+ business loan defaults from NBFC fintechs worsened year over year
* Top 5 states contributing 50 percent of total loans disbursed by fintechs were Uttar Pradesh, Maharashtra, Delhi, Gujarat and Rajasthan
“Fintech Lending has changed the approach to lending in India through innovative products and real-time solutions. The industry has seen 38 percent year-on-year growth through September 20 despite the COVID pandemic and will play a vital role in providing credit to last mile borrowers. I hope that the Fintech Pulse will provide important insights to the stakeholders, “said V Satya Venkata Rao, Vice President of SIDBI, at the launch.
“We are very pleased to be able to present the second edition of ‘Fintech Pulse’ in cooperation with SIDBI. This issue highlights how NBFC fintech lending has evolved in times of pandemic to the impact of Covid-19 on fintech lending, “said KM Nanaiah, Managing Director, Equifax Credit Information Services Ltd. and Country Leader, Equifax India and MEA.
This story is provided by PRNewswire. ANI assumes no responsibility for the content of this article.
(Only the headline and image of this report may have been revised by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)