Credit bureau firm CRIF and Digital Lenders Association of India (DLAI), an industry association of digital lenders with 100 members, launched a second edition of ‘Fintech Barometer - lending trends in H1 FY25 PL, UBL & LAP’ report.

The report, that analyzed the role of lenders in personal loans, unsecured business loans, and property loans categories between April-September 2024 period, stated that in the personal loans category, the portfolio outstanding has grown Rs 12.1 lakh crore in H1 FY24 to Rs 13.7 lakh crore in H1 FY25.

 

The active loans declined to 1,139.8 lakh during the first half of fiscal year 2025, from 1,195.7 lakh recorded last year during same period. Small ticket loans under Rs 10,000 witnessed a significant de-growth in active loans, while the portfolio remains stagnant.

In the unsecured business loans, portfolio outstanding increased from Rs 5.5 lakh crore in H1 FY24 to Rs 7.8 lakh crore. In addition, the active loans grew significantly from 1.1 lakh to 1.5 lakh in H1 FY25.

Whereas the loan against property saw a steady growth in portfolio outstanding during April-September 2024 period reaching Rs 11.3 lakh crore from Rs 9.2 lakh crore recorded a year earlier. 

And, the active loans increased by 21.8% yoy to 0.8 lakh.

 

In both PL and unsecured business loan, NBFCs gained dominance in originations value and volume in H1 FY25; while private banks and PSU banks' share declined in both value and volume.

In loan against property, NBFCs and private banks continued to dominate originations, with NBFCs having a significant edge in volume.

 

In PL, the portfolio at risk (31-90%) increased to 1.8% between April-September 2024 period from 1.5% in the previous year -- showing early signs of stress.