Fintech deepens access to formal credit with 11 crore loans in FY25

FinTech non-banking financial companies (NBFCs) sanctioned a record 10.9 crore personal loans worth Rs. 1,06,548 crore (US$ 12.42 billion) in FY25, according to data released by the Fintech Association for Consumer Empowerment (FACE), the Reserve Bank of India (RBI) recognised Self-Regulatory Organisation in the FinTech sector. Although FinTech lenders represented only 12% of the market by value, they accounted for 74% of loan volumes, highlighting their growing significance in catering to demand for small-ticket, high-frequency personal credit.
As of March 2025, the total outstanding loan portfolio of FinTech NBFCs stood at Rs. 73,311 crore (US$ 8.54 billion), registering a modest 0.7% YoY increase. The sector saw an 11% rise in the total sanctioned value and a 22% increase in loan volumes in FY25. Notably, 66% of loan value was sanctioned to borrowers under the age of 35, while 39% of loans were issued in tier III towns and beyond, reflecting the segment’s inclusive reach. The average loan size was Rs. 9,786 (US$ 114.05), but 46% of the total loan value came from tickets exceeding Rs. 50,000 (US$ 582.71). Approximately 56% of borrowers had a credit history of over five years, and 59% were mid-to-low risk customers, indicating maturing underwriting practices. Women accounted for 16% of the total sanctioned loan value, showing a steady rise in female participation in digital credit.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.