66% of Indian fintech company loans were directed towards customers under 35, RBI report claims
Fintech Association for Consumer Empowerment
(FACE), an RBI-recognised Self-Regulatory Organisation in the FinTech Sector (SRO-FT), claims that 66% of the loan value sanctioned by fintech companies in India was directed to customers aged below 35.
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This highlights fintech's significant reach among younger borrowers. The report, based on credit bureau data from April 2018 to March 2025, provides an overview of fintech's role in India's personal loan market. It indicates that fintechs are increasing access to formal credit through small-value loans, serving previously unaddressed segments. While fintechs account for 12% of the personal loan market by value, they contribute over 74% of loan volumes.
Here are some key highlights from the report:
Sanction Volumes: FinTech NBFCs sanctioned 10.9 crore personal loans worth Rs 1,06,548 crore.
FinTech NBFCs sanctioned 10.9 crore personal loans worth Rs 1,06,548 crore. Portfolio: As of March 2025, FinTech NBFCs held an outstanding loan value of ₹73,311 crore, a 0.7% year-on-year increase.
As of March 2025, FinTech NBFCs held an outstanding loan value of ₹73,311 crore, a 0.7% year-on-year increase. Market Expansion: In FY 24-25, sanction value grew by 11% and volume by 22%.
In FY 24-25, sanction value grew by 11% and volume by 22%. Youth-Centric: Beyond the 66% for under 35s, 39% of sanctioned loans went to borrowers from Tier III towns and beyond, with their share increasing.
Beyond the 66% for under 35s, 39% of sanctioned loans went to borrowers from Tier III towns and beyond, with their share increasing. Ticket Size and Risk: The average ticket size was ₹9,786, but 46% of loans by value had ticket sizes above ₹50,000. 56% were sanctioned to borrowers with a credit bureau vintage of 5+ years. 59% of loans were extended to borrowers with mid- to low-risk profiles.
The average ticket size was ₹9,786, but 46% of loans by value had ticket sizes above ₹50,000. 56% were sanctioned to borrowers with a credit bureau vintage of 5+ years. 59% of loans were extended to borrowers with mid- to low-risk profiles. Gender Inclusion: Female participation in fintech lending reached 16% of sanctioned value.
What FACE said about loans approved by fintech companies in India
Commenting on the report, Sugandh, CEO of FACE, said:
'The report shows assorted offerings across ticket sizes, demographics, and bureau risk profiles make FinTechs the preferred choice for the borrowers. Customised and convenient digital loans bring immense value as millions navigate their economic lives. The
's Digital Lending Regulations and self-regulatory framework provide the FinTech sector with solid ground and guardrails to drive responsible credit, and market trends attest to this.
The reach of FinTechs amongst the young demographic in Tier III and beyond is a key driver of inclusive and resilient economic growth. And with innovation and customer-centricity, FinTechs will continue to deepen and widen their value for borrowers.'
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