Latest News | Fintechs' Personal Loan Portfolio Drops 10 Pc in Q2, NPAs Inch Up: FACE

Mumbai, Jan 13 (PTI) Fintechs' portfolio outstanding in the riskier personal loans segments dropped by 10 per cent in the September quarter, a self-regulatory organization (SRO) for the sector said on Monday.

In a data release -- which comes amid concerns on the personal loans front, which have even led to actions from RBI to curb lending in it -- Fintech Association for Consumer Empowerment (FACE) said the loan outstanding dropped to Rs 66,683 crore at the end of September compared to Rs 74,057 crore in June.

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The SRO said loans unpaid for over 90 days increased to 3.4 per cent from 3.2 per cent in June.

West Bengal (4.1 per cent), Uttar Pradesh (3.7 per cent), Rajasthan and Gujarat (3.6 per cent) each had the highest incident of stress, it added.

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The first half of the fiscal witnessed a reduction in the average ticket size per borrower to Rs 9,225 against Rs 10,222 in FY24, it said, adding that 41 per cent of the loans in the first half were under Rs 25,000.

Digital personal loans by Fintech NBFCs accounted for 12 per cent of the overall personal loan market by sanction value in the Q2, it said, adding that they were over three-fourths from a volume perspective, which illustrates lower ticket sizes.

The data analyses the performance of 71 fintech non-banking finance companies (NBFCs), the statement said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)