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Hans India
29-05-2025
- Business
- Hans India
India's fintech lenders draw younger, more rural customer base: Report
The fintech sector lenders are drawing a younger and more rural customer base, with 61 per cent of borrowers being under the age of 30, and 24 per cent residing in rural areas, a report showed on Thursday. The share of prime and above-prime consumers in fintech originations has also increased steadily, reaching 62 per cent in December 2024 from 60 per cent in December 2023 and 55 per cent in December 2022. Notably, however, average ticket sizes have declined across all risk tiers, according to the report by TransUnion CIBIL. India's fintech lending sector is undergoing a transformation, driven not just by volume, but by a fundamental shift in borrower demographics, as they increasingly serve younger and more rural populations. This marks a significant evolution in the fintech customer base, reflecting the sector's growing role in democratising access to credit across India's diverse population. According to the report for the quarter ending December 2024, fintech lenders now serve over 23.3 million consumers — up from 20.2 million in December 2023 and 14.4 million in December 2022. Outstanding balances reached Rs 1.3 trillion, with fintechs accounting for 1.03 per cent of total retail credit balances, highlighting lenders' expanding role in India's credit ecosystem. These trends highlight a significant opportunity for fintech lenders to deepen their reach in underserved segments, positioning them well for sustained growth in India's evolving credit landscape. 'The fintech lending sector has played a vital role in reshaping India's financial landscape by delivering faster and more accessible credit through innovative digital technology,' said Bhavesh Jain, MD and CEO, TransUnion CIBIL. This progress has expanded financial inclusion, reaching millions across diverse demographics and geographies. 'As the sector continues to evolve, sustained growth will rely on broadening product offerings and adopting data-driven approaches to provide more personalised financial solutions,' he maintained. Fintechs are also seeing stronger customer retention in the personal loan segment, especially in ticket sizes above Rs 50,000. As of December 2024, 48 per cent of borrowers in this segment had prior credit relationships with the same lender, higher than the 43 per cent who had that relationship in December 2023. 'FinTechs continue to reach ever more people, especially younger and unaddressed segments. As the industry grows, it is important that lending practices stay customer-centric and respond responsibly to evolving risks,' said Sugandh Saxena, CEO, FinTech Association for Consumer Empowerment (FACE).
The Hindu
23-05-2025
- Business
- The Hindu
Commercial credit portfolio of MSMEs grew 13%: report
The commercial credit portfolio for Micro, Small and Medium Enterprises (MSME) sector grew 13% year-over-year (YoY) as the overall credit exposure increased to ₹35.2 lakh crore as of March 31, 2025, according to TransUnion CIBIL and SIDBI's MSME Pulse Report for May 2025. This trend was largely driven by an increase in credit supply to existing borrowers, the report said. Overall MSME balance-level delinquencies improved to 1.8%, a 35 basis points drop from 2.1% in March 2024, primarily driven by the borrower segment with exposure of ₹50 lakh to ₹50 crore. The borrower segment with exposure up to ₹10 lakh, however, witnessed a slight deterioration at 5.8% in March 2025 compared to 5.1% in March 2024. Similarly, the borrower segment with exposure from ₹10 lakh to ₹50 lakh also saw a marginal rise in the delinquency level to 2.9% as compared to 2.8% in March last year. While the share of New-to-Credit (NTC) MSME borrowers to total new loan originations continued to be strong at 47% as of March 2025, it was lower than the share of 51% one year back. The report added that the trade sector contributed the greatest proportion of NTC borrowers at 53%, while the manufacturing sector saw the highest YoY growth (70%) in the number of NTC borrowers originating a commercial loan. Four states dominate commercial lending Maharashtra, Gujarat, Tamil Nadu, Uttar Pradesh and Delhi continued to dominate commercial lending, together accounting for 48% of the value of overall originations in the quarter ending March 2025. While the manufacturing sector had the greatest share of originations in Maharashtra, Gujarat, Tamil Nadu and Delhi, Uttar Pradesh had the most originations to the trade sector. Manoj Mittal, Chairman and Managing Director, Small Industries Development Bank of India (SIDBI) said that though the credit flow to the MSME sector has improved over the years, it still has an addressable credit gap. According to Bhavesh Jain, MD and CEO, TransUnion CIBIL, 'For MSMEs to achieve sustainable growth, it is imperative that they receive assistance in accessing formal credit and guidance in debt management.'
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Business Standard
24-04-2025
- Business
- Business Standard
Edelweiss MF launches BSE Internet Economy Index Fund; check key details
Edelweiss BSE Internet Economy Index Fund: Edelweiss Mutual Fund has launched its Edelweiss BSE Internet Economy Index Fund. It is an open-ended index fund replicating the BSE Internet Economy Total Return Index. The new fund offer (NFO) will open for subscription on April 25, 2025, and close on May 9, 2025. It is India's first index fund offering exposure to the BSE Internet Economy Index. The index covers 11 sub-industries, including e-retail, internet and catalogue retail, e-learning, digital entertainment, financial technologies and other digitally driven sectors. The BSE Internet Economy Index comprises the top 20 companies selected from the BSE 500 based on their six-month average market capitalisation. Investors can invest a minimum amount of ₹100 and in multiples of ₹1 thereafter. According to the scheme information document (SID), if the units are redeemed or switched out on or before 30 days from the date of allotment, an exit load of 0.10 per cent will be charged. However, no exit load will be charged, if units are redeemed after 30 days from the date of allotment. The investment objective of Edelweiss BSE Internet Economy Index Fund is to provide returns that, before expenses, closely correspond to the total returns of the BSE Internet Economy Total Return Index, subject to tracking errors. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved, as per the SID. Bhavesh Jain and Bharat Lohati serve as the designated fund managers for the scheme. There are some risk factors associated with the scheme such as heavy reliance on a single sector means that poor performance in that area can lead to substantial losses, according to the SID. According to the riskometer, the principal invested in the scheme will be at very high risk. Radhika Gupta, managing director and chief executive officer at Edelweiss Mutual Fund said that India's digital economy is growing four times faster than its overall GDP, and is expected to achieve rapid and transformative growth. "With increasing internet penetration and tech adoption across sectors, we see a compelling opportunity for investors to participate in this digital revolution," Gupta said. The fund offers investors an opportunity to invest in a pure-play internet and digital economy-focused portfolio, she added. Edelweiss BSE Internet Economy Index Fund: Who should invest? According to the SID, the Edelweiss BSE Internet Economy Index Fund is suitable for investors seeking long-term capital appreciation along with passive investment in equity and equity-related securities replicating the composition of the BSE Internet Economy Total Returns Index, subject to tracking errors. However, "investors should consult their financial advisers if in doubt about whether the product is suitable for them," it said.
