Fintech NBFCs sanctioned 8.3 crore loans worth Rs 81,365 crore between Apr-Dec 2024

28 Mar 2025, 09:02 PM

However, quarter-on-quarter sanction value declined by 15% in Q3 FY24-25 compared to Q2 FY24-25.

Team Head&Tale

While Fintech NBFCs account for only 13% of the total personal loan sanction value in FY24-25 (between April- December 2024), they drive 76% of sanction volumes, according to a report released by the Fintech Association for Consumer Empowerment (FACE), which is a the Reserve Bank of India (RBI)-recognised Self-Regulatory Organisation in the FinTech sector (SRO-FT).

Key highlights:

-- Fintech NBFCs sanctioned 8.3 crore loans worth Rs 81,365 Cr in FY 24-25, maintaining their lead in digital personal loans with a focus on high-volume, small-value lending to under-served customer segments. 

However, growth is slowing. Quarter-on-quarter sanction value declined by 15% in Q3 FY24-25 compared to Q2 FY24-25, and the overall growth rate for the nine months in FY 24-25 was 16% over the comparable period in FY23-24. 

-- More than a third of loans were sanctioned to customers in Tier III and beyond, highlighting fintech’s role in reaching underserved populations. Two-thirds of the total sanctioned value was to individuals under 35.

-- The average ticket size of fintech personal loans stood at Rs 9,758. Higher-value loans were increasingly granted to customers with a longer credit history, ensuring risk mitigation while fostering financial inclusion.

-- The total outstanding portfolio of fintech NBFCs stood at Rs 72,775 crore as of December 2024. Fintech NBFCs accounted for 42% of all active personal loan accounts but only 5% of the total personal loan outstanding value, underscoring their role in small-value lending.

-- In FY 24-25 (until Dec 2024), Fintech NBFCs allocated 55% of their sanctioned value to customers with a credit bureau vintage of over 5 years.
Lending to newer customers (bureau vintage of less than 1 year) rose to 9% in FY 24-25 compared to 5% in FY 23-24.

Sugandh Saxena, CEO of FACE, said, "Fintech is key to digital financial inclusion and inclusive growth for the country. With over two-thirds of loans catering to young and tier II & III city customers, Fintech is key to meeting the country’s growing aspirations and resilience."