According to a research titled "Charting New Horizons for Fintech Lending: Navigating Profitability and Scalability," the value and volume of small-ticket loans have increased at fintech companies. The survey was carried out by Experian India and the Digital Lenders Association of India (DLAI).

Furthermore, as per the survey, fintech now accounts for 10% of new disbursements by value. They've also been an important enabler for incumbents." According to Business Standard, in 2018, fintechs primarily provided small-ticket loans. The loan totaled less than Rs 1,000,000. "Currently, they make up 77% of the market," the survey states. 

While all lenders in the personal loan credit market under Rs 1 lakh have grown, fintech companies and those enabled by fintechs have risen at a particularly rapid pace.

In terms of value, small ticket loan disbursements climbed from 29 percent in 2018 to 51 percent in FY 2024, which runs until September 2023.

Increase in Personal Loans

The personal loan portfolio has increased significantly, reaching Rs 81,00 crore. According to the data, the personal loan portfolio size at the end of September 23 is Rs 81,000 crore. NBFCs have the biggest market share (34%), followed by Fintech (33%). 

Furthermore, fintech companies are capitalizing on new opportunities that are emerging in both small urban areas and communities. According to the research, "New geographies provide new 'blue oceans' for fintech as traditional business hotspots are dominated by traditional players."

According to the research, "Fintech currently has a narrow market focus on small-ticket personal loans and business loans." Fintechs received Rs 32,566 for small-ticket business loans in FY24 (till September 2023). This was a significant increase from Rs 3,816 in 2017.