FinTech non-banking financial companies (NBFCs) sanctioned a record 10.9 crore personal loans in FY 2024–25, amounting to Rs 1,06,548 crore, the latest data released by Fintech Association for Consumer Empowerment (FACE), the Reserve Bank of India (RBI)-recognised Self-Regulatory Organisation in the FinTech sector (SRO-FT) shows.
Despite representing just 12% of the personal loan market by value, FinTech lenders accounted for an overwhelming 74% of loan volumes—underscoring their central role in meeting the country’s rising demand for small-ticket, high-frequency loans.
“FinTech lenders are clearly becoming the preferred choice for borrowers across age groups, risk profiles, and geographies,” said Sugandh Saxena, CEO of FACE. “With customised, digital-first offerings and a solid regulatory foundation guided by the RBI’s Digital Lending framework and our self-regulatory efforts, the sector is well-positioned to offer responsible credit at scale. Particularly encouraging is the growing uptake among young borrowers and consumers from Tier III towns and beyond, signaling the potential for a more inclusive and resilient financial ecosystem.”
The report also shows that, FinTechs contributed 74% of all personal loan volumes, far outpacing traditional players in reach and penetration. As of March 2025, the total outstanding FinTech loan portfolio stood at Rs 73,311 crore—a 0.7% year-on-year increase.
While early growth surged post-COVID on a low base, the sector has shown signs of stabilised expansion. FY 2024–25 saw an 11% rise in loan sanction value and a 22% increase in volumes.
66% of the total sanctioned value was issued to borrowers under the age of 35, highlighting the strong preference for digital credit among younger consumers.
39% of sanctioned loans were directed to borrowers residing in Tier III towns and beyond, a share that continues to grow steadily.
While the average loan size was Rs 9,786, nearly half (46%) of the total loan value came from tickets above Rs 50,000, indicating the flexibility FinTechs offer. Notably, 56% of loans went to borrowers with a credit bureau history of five years or more.
59% of loans were disbursed to customers with mid-to-low risk profiles, reflecting maturing underwriting practices and prudent portfolio management.
Women accounted for 16% of the total sanctioned value—a steady but encouraging improvement in female borrower participation.
Despite representing just 12% of the personal loan market by value, FinTech lenders accounted for an overwhelming 74% of loan volumes—underscoring their central role in meeting the country’s rising demand for small-ticket, high-frequency loans.
“FinTech lenders are clearly becoming the preferred choice for borrowers across age groups, risk profiles, and geographies,” said Sugandh Saxena, CEO of FACE. “With customised, digital-first offerings and a solid regulatory foundation guided by the RBI’s Digital Lending framework and our self-regulatory efforts, the sector is well-positioned to offer responsible credit at scale. Particularly encouraging is the growing uptake among young borrowers and consumers from Tier III towns and beyond, signaling the potential for a more inclusive and resilient financial ecosystem.”
The report also shows that, FinTechs contributed 74% of all personal loan volumes, far outpacing traditional players in reach and penetration. As of March 2025, the total outstanding FinTech loan portfolio stood at Rs 73,311 crore—a 0.7% year-on-year increase.
While early growth surged post-COVID on a low base, the sector has shown signs of stabilised expansion. FY 2024–25 saw an 11% rise in loan sanction value and a 22% increase in volumes.
66% of the total sanctioned value was issued to borrowers under the age of 35, highlighting the strong preference for digital credit among younger consumers.
39% of sanctioned loans were directed to borrowers residing in Tier III towns and beyond, a share that continues to grow steadily.
While the average loan size was Rs 9,786, nearly half (46%) of the total loan value came from tickets above Rs 50,000, indicating the flexibility FinTechs offer. Notably, 56% of loans went to borrowers with a credit bureau history of five years or more.
59% of loans were disbursed to customers with mid-to-low risk profiles, reflecting maturing underwriting practices and prudent portfolio management.
Women accounted for 16% of the total sanctioned value—a steady but encouraging improvement in female borrower participation.
You may also like
Nearly 1,500 cows were sacrificed during Eid in Dhubri: Assam CM
Bob Vylan dropped by agents in latest blow after Glastonbury controversy
Fury as EU set to impose new rule on UK in hours - 'constitutional outrage'
17 players leaving Arsenal today including Thomas Partey as Mikel Arteta rebuild takes shape
Delhi: No sale of diesel, petrol to vehicles above 10, 15 years of age from tomorrow
