Regulations boosted customer confidence in fintech lending as a result disbursement increased by 216% over the last year, said Fintech Association for Consumer Empowerment (FACE), a self-regulatory body for fintech lenders.
Implementation of RBI’s digital lending guidelines brought tailwinds for the industry as it set clear rules and standards, boosting the confidence of the customers, fintech lenders and other market participants, observed Sugandh Saxena, CEO at FACE.
“Proactive efforts by multiple stakeholders to crack down on dubious lending apps are improving the ecosystem with greater customer trust and expanding the market for legitimate players.’‘ he added.
For instance, compared with Q2 FY 21-22, the total value of loans disbursed by digital lending platforms has increased by 216% in Q2 FY 22-23, whereas the volume of loans disbursed has seen a 149% growth over the last year.
As per report released on Friday, in Q2 FY 21-22, the total value of loans disbursed by digital lending platforms amounted to ₹4,435 crore while a year later in Q2 FY 22-23, it increased to ₹14,016 crore.