Consumer and Personal Loans Bolster Fintech Lending in Fiscal Year 2021

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Mumbai, India, February 15, 2021 / PRNewswire / – SIDBI and Equifax have launched the second edition of “Fintech Pulse,” a quarterly publication highlighting key trends in the rapidly growing Fintech segment of the NBFC (Non-Bank Finance Corporation).

“Fintech Pulse” aims to provide information on trends in the Indian Fintech industry – from disbursements and delinquencies to the fastest growing states and major loan categories.

Highlights:

  • Consumer and personal loans remain strong for NBFC-Fintechs with 87% share in active loans
  • There is a 38% increase in portfolio value over the year, with personal loans growing while business loans show declining value
  • Despite the growth, consumer and personal loans saw the average size of banknotes drop by over 40%, to less than INR 9,000.
  • Personal loan disbursements are down 71% year on year
  • In the industry as a whole, NBFC-Fintechs have a market share of 2.44% of corporate loans by number of active loans and of 1.2% by outstanding portfolio
  • Business loan disbursements by all types of lenders declined after the onset of the pandemic, but began to recover from April-june 2020 quarter for public sector banks
  • Over 90 defaults for business loans by NBFC-Fintechs deteriorated year-on-year
  • The top 5 states contributing 50% of the total loans disbursed by Fintechs were Uttar Pradesh, Maharashtra, Delhi, Gujarat and Rajasthan

At launch, Shri V. Satya Venkata Rao, Deputy Managing Director of SIDBI said: “Fintech Lending has changed the approach to providing credit in India through innovative products and real-time solutions. The industry grew 38% year-on-year on September 20, despite the COVID pandemic. As we move towards a new normal, the fintech lending industry will play a crucial role in providing credit to last mile borrowers. I hope Fintech Pulse will provide key information to stakeholders. “

Shri KM Nanaiah, Managing Director of Equifax Credit Information services Ltd. and Country Head, Equifax India and MEA, said: “We are very pleased to present the second edition of ‘Fintech Pulse’ in partnership with SIDBI. This edition shines a light on how NBFC -Fintech Loans have operated during times of pandemic. In addition, the report contains better information on business loans with a section dedicated to the impact of Covid-19 on Fintech loans. “

About Equifax

At Equifax (NYSE: EFX), we believe knowledge is the engine of progress. As a global data, analytics and technology company, we play a vital role in the global economy by helping financial institutions, businesses, employees and government agencies to make critical decisions with greater trust. Our unique blend of differentiated data, analytics, and cloud technologies generate insights that are useful to make decisions and get people moving. Based at Atlanta and supported by more than 11,000 employees worldwide, Equifax operates or has investments in 25 countries in North America, Central and South America, Europe, and the Asia Pacific Region. For more information visit Equifax.com

About SIDBI

Small Industries Development Bank of India was established by an Act of Parliament in 1990. SIDBI is mandated to serve as the lead financial institution for the execution of the triple program of promotion, financing and development of micro, small and medium enterprises (MSME sector) and the coordination of the functions of the various institutions engaged in similar activities. Over the years, through its various financial and development measures, the Bank has touched the lives of people in various strata of society, impacted businesses across the MSME spectrum, and engaged with many credible institutions in the MSME ecosystem. As part of Vision 2.0, SIDBI has led various initiatives to tackle information asymmetry in the MSME sector, such as “MPME pulse ‘, monitoring the health of MSMEs and ‘CriSidEx ‘, to assess the feelings and aspirations of MSEs and ‘Fintech Pulse ‘, for information on credit data on the fintech lending segment, ‘Pulse Microfinance ‘, analysis report on the microfinance sector and ‘Spotlight on industry ”, a comprehensive report on the main industrial sectors.

SOURCE Equifax; SIDBI

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