Individuals under 40 lead in availing digital loans: FACE report

The amount of loan disbursed saw a 21% Y-o-Y jump from Rs 76,396 crores in FY 21-22 to Rs 92,267 crores in FY 22-23. And not just the amount, the number of loans disbursed also significantly went up from 4.77 crores in FY 21-22 to 7.10 crores in FY 22-23. 

The premium for senior citizen's health insurance policies will always higher than those for younger people. The stakes are higher in case of the elderly and insurers don't want to take unnecessary risks here.

A recent report by Fintech Association for Consumer Empowerment (FACE) and credit information company Equifax highlighted how young India, especially those aged under 40 are taking the lead when it comes to taking loans online, making up 80% of the total borrowers. However, the gender ratio amongst them remained heavily skewed towards men, who made up for 86% of the lot. Women only constituted 14% of the total. 

Even the amount of loan disbursed saw a 21% Y-o-Y jump from Rs 76,396 crores in FY 21-22 to Rs 92,267 crores in FY 22-23. And not just the amount, the number of loans disbursed also significantly went up from 4.77 crores in FY 21-22 to 7.10 crores in FY 22-23. 

The average ticket size of loan inched slightly above Rs 10,000 to touch Rs 12,989.For personal loans, the general loan amount taken remained below Rs 5,000. It took only 5 Indian states, namely Maharashtra, Karnataka, Uttar Pradesh, Telangana and Tamil Nadu to make up for 50% of all loan disbursements last year. Hearteningly, 40% of all loan demand came from tier-3 Indian cities. 

And even amongst loans, personal loans, which made up 72% of all loans given, topped the list, followed by consumer loans (15%) and business loans (6%). Most of the loans taken had a tenure of less than 6 months, touching 88% of all the volume of loans closed in FY 22-23. 

Says Mahesh Shukla CEO and Founder, PayMe, “Digital loans are finding a significant audience among Gen Z, as this generation has grown up in a world where digital technology is an integral part of everyday life. At PayMe itself, 25 percent of customers are below 25 years of age, and the number has gone up steeply in recent years – from 10.7 percent during FY 21-22 to 19.5 percent in FY 22-23 and 25 per cent now. Gen Z values convenience and efficiency, and digital loans allow them to apply for loans, receive approvals, and manage their finances without the need to visit a physical bank branch or go through lengthy paperwork processes”. 

“Also, digital loans may offer more flexible terms and repayment options, which can be appealing to Gen Z, who often have varying financial needs and income streams”, he further noted. 

Published: September 18, 2023, 19:38 IST
Exit mobile version