The slowing growth rate and a 10% reduction in loans outstanding in Sep 2024 compared to Jun 2024.
FinTech BizNews Service
Mumbai, 13 Jan 2025. The Fintech Association for Consumer Empowerment (FACE), an RBI-
recognised Self-Regulatory Organisation in the FinTech Sector (SRO-FT), has released its report
analysing the progress of fintech personal loans in India. The report is based on an analysis of the
personal loan data of 71 FinTech NBFCs (i.e. digital NBFCs) between Apr 2018 and Sep 2024.
The report underscores the transformative contribution of fintechs to provide formal credit to
underserved markets. Fintechs ability to leverage technology with customer-centricity continues
to drive access to formal credit for an inclusive economy. The report highlights fintech’s focus on
high-volume, small-value lending that caters to a vast customer segment and significantly
contributes to digital financial inclusion.
Key Highlights in H1 FY 24-25:
1. The report captures a slowing growth rate and a 10% reduction in loans outstanding in Sep
2024 compared to Jun 2024.
2. Fintech NBFCs' digital personal loans (~Rs 49,000 Cr), though worth 12% of the personal loan
market by sanction value in H1 FY 24-25, continue to expand formal credit by seizing
opportunities in vast underserved markets and customer preference for digital credit. Fintech
loans, totalling 5.3 Cr, account for 76% of H1 FY 23-24 sanction volumes.
3. With an average loan ticket size of Rs 9,225 in H1 FY 24-25, Fintech NBFCs are remarkably
distinct in providing customised and small-value credit to customers across segments to meet
various needs. However, there is much diversity, and ticket sizes are higher for customers in
metro/urban areas and increase with customers’ age and bureau vintage.
4. Continuing with previous trends, during H1 FY 24-25, over two-thirds of sanction value went
to young (< 35 years of age), 85% to males, and more than a third to customers belonging to
Tier III and beyond.
5. Fintech loans are climbing in ticket sizes and bureau vintage, with more than half of the
sanction value coming from loans with ticket sizes exceeding Rs 50,000 and customers’
bureau vintage of 5 years.
