In the second quarter of the financial year 2024, there was a significant 43% annual growth in the value of digital loan disbursements, as reported by FACE (Fatality Assessment and Control Evaluation). This indicates a substantial increase in the amount of money being distributed through digital loan processes compared to the same period in the previous year.
Accompanying the rise in value, the volume of digital loan disbursements also saw a notable 39% annual increase during Q2FY24. This suggests that not only are more loans being granted digitally, but they also span a diverse range of amounts.
Despite the positive trends, there were notable challenges in the digital lending landscape. The major source of complaints regarding digital loan disbursements stemmed from issues related to credit bureaus. Customers faced difficulties, possibly in terms of credit history or scoring, which led to concerns and complaints.
Additionally, complaints were also lodged due to problems related to mobile applications and disclosures. This implies that issues with the functionality or user experience of the digital platforms, as well as concerns regarding the information provided to borrowers, contributed to customer dissatisfaction.
In conclusion, while there is evident growth in the digital loan disbursement sector, challenges such as credit bureau-related issues and problems with applications and disclosures highlight areas that may need attention and improvement to ensure a smoother and more satisfactory digital lending experience for customers.
Source: FACE Report, FACE stands for Fatality Assessment and Control Evaluation
