00:00 Small-value loans disbursed by fintech companies continue to rise in the underserved regions,
00:06 primarily in tier-3 cities and beyond.
00:09 This is according to a report by FACE, which is the self-regulatory body for fintech companies
00:14 in India.
00:15 As of September 2023, the outstanding value of fintech personal loans stood at Rs 55,353
00:23 crore.
00:24 Fintech loans are rising on three metrics - ticket size, bureau vintage and risk chain.
00:29 Nearly half of the sanctioned loans are coming from borrowers with ticket sizes less than
00:33 Rs 50,000, bureau vintages of more than five years and mid-low credit risk.
00:39 While average ticket size for fintech lending is Rs 10,000, the ticket size in urban areas
00:45 is a little higher.
00:46 Overall, portfolio quality as well has been improving for urban and female borrowers as
00:51 of September 2023.
00:53 The report also highlighted that the share of mature borrower base is rising in fintech
00:59 lending.
01:00 The portion of mid-low credit risk borrowers increased to 59% in the first half of FY24
01:06 in comparison to 36% in FY19.
01:09 One interesting point here to note is that in rural areas, the share of digital loan
01:13 borrowers is increasing, but it is also a function of migration to urban areas in the
01:20 last decade, which means that the migrants who are settled in urban areas are availing
01:25 personal loans but they submit their permanent addresses in the rural areas.
01:29 So states like Bihar, Himachal Pradesh and Uttar Pradesh have much higher percentage
01:34 of rural, plausibly as migrants from these states in urban areas access fintech loans.
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