Fintechs lead small-ticket loans' volume with 77% market share: Study

Fintech companies in the country have seen an uptick in the volume and value of small-ticket loans disbursed over the past six years, data from a joint report by Experian India and the Digital Lenders Association of India (DLAI) shows. 

In financial year 2018 (FY18), fintechs accounted for 50 per cent of the loan volumes disbursed with a ticket size less than Rs 1,00,000. In the same category, their market share has expanded to 77 per cent in FY24 (till September 2023). 

On the value front, fintechs cornered 29 per cent of small ticket loans disbursed in FY18, which rose to 51 per cent in FY24 (till September 2023). 

 

Meanwhile, the average ticket size for lenders in the personal loans category in FY24 (till September 2023) was pegged at Rs 11,576. 
 

The report further added that the personal loan portfolio size at end of September 23 stands at around Rs 81,000 crore. Non-banking financial companies (NBFCs) own 34 per cent share of the pie, followed by fintech companies owning 33 per cent of the market. 

Ticket size distribution across lenders

	<10,000	10,000-50,000	50,000-1,00,000	>1,00,000
Fintechs	75	21	2	2
Fintech-enabled	57	40	4	-
NBFCs	20	28	20	32
Private banks	~1	12	16	71
Public Sector Banks	-	2	9	89

Market share of lenders by volume (in %)

	FY18	FY19	FY20	FY21	FY22	FY23	FY24 (till September 2023)
Fintechs	50	65	75	75	63	76	77
Fintech-enabled	7	3	3	5	13	13	11
NBFCs	23	24	18	13	20	8	9
Private banks	11	4	3	2	2	2	2
Public Sector Banks	9	4	1	4	2	1	1

Market share of lenders by value (in %)

	FY18	FY19	FY20	FY21	FY22	FY23	FY24 (till September 2023)
Fintechs	29	34	42	39	38	47	51
Fintech-enabled	4	4	6	8	13	14	12
NBFCs	34	40	32	24	32	25	25
Private banks	18	11	14	10	10	9	8
Public Sector Banks	14	11	6	20	7	5	3

Source: Experian India- DLAI whitepaper