According to a report from the Fintech Association for Consumer Empowerment (FACE), an RBI-recognized Self-Regulatory Organisation in the FinTech Sector (SRO-FT), 66% of loans sanctioned by fintech companies in India went to customers under the age of 35. This demonstrates fintech's significant reach among young borrowers. The report provides an overview of fintech's role in the Indian personal loan market using credit bureau data from April 2018 to March 2025. It shows that by offering small-value loans, fintechs are opening up previously unexplored markets and increasing access to formal credit. Fintechs make up over 74% of loan volumes, despite only making up 12% of the market value for personal loans.
Key Highlights
- Fintech NBFCs sanctioned ₹1.06 lakh cr across 10.9 cr personal loans in FY25, dominating retail credit volumes.
- RBI data reveals 66% of fintech loan value went to borrowers under 35, highlighting youth-focused lending.
Also Read: India's Fintech Market to Reach $400 Bn in 3 Years: FM Sitharaman
Here are some key points from the report:
Sanction Volumes: FinTech NBFCs sanctioned 10.9 crore personal loans totaling Rs 1,06,548 crore.
Portfolio: As of March 2025, FinTech NBFCs had an outstanding loan value of ₹73,311 crore, up 0.7% year on year.
Market Expansion: In FY 24-25, sanction value increased by 11% and volume by 22%.
Youth-Centric: In addition to the 66% for under 35s, 39% of sanctioned loans went to borrowers from Tier III towns and beyond, and their share is increasing.
Ticket Size and Risk: While the average ticket size was ₹9,786, 46% of loans by value had ticket sizes exceeding ₹50,000. 56% of loans were approved for borrowers with a credit bureau vintage of 5 years or more. 59% of loans were made to borrowers with medium- to low risk profiles.
Gender Inclusion: Female participation in fintech lending totaled 16% of the sanctioned value.
