Latest news with #FintechAssociationforConsumerEmpowerment
Time of India
a day ago
- Business
- Time of India
66% of Indian fintech company loans were directed towards customers under 35, RBI report claims
A report from the 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. Tired of too many ads? go ad free now 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.'
Time of India
4 days ago
- Business
- Time of India
Fintech-driven personal loans show rising stress, delinquencies at 6-quarter high
Small-value personal loans disbursed by fintech companies continue to show signs of stress. Data released by the Fintech Association for Consumer Empowerment (FACE), the Reserve Bank of India (RBI)-recognised self-regulatory organisation in the fintech sector, shows that personal loans overdue by more than 90 days rose to 3.6% at the end of March 2025—the highest level in the last six quarters. The biggest pressure is coming from loans disbursed in Tier-3 cities and beyond, which contributed 4.2% to the delinquency rate, followed by rural areas at 4.1% and semi-urban regions at 3.8%. In terms of borrower age, those under 25 accounted for 6.1% of delinquent loans, while the 26–35 age group contributed 3.6%. Out of the total personal loan market of Rs 8.80 lakh crore, fintech NBFCs held a 74% share by volume—amounting to 10.9 crore loans—and a 12% share by value at Rs 1.06 lakh crore as of March 2025. 'Fintech lenders are clearly becoming the preferred choice for borrowers across age groups, risk profiles, and geographies,' said Sugandh Saxena, CEO of FACE. 'With customised, digital-first offerings and a solid regulatory foundation guided by the RBI's Digital Lending framework and our self-regulatory efforts, the sector is well-positioned to offer responsible credit at scale. Particularly encouraging is the growing uptake among young borrowers and consumers from Tier-III towns and beyond, signalling the potential for a more inclusive and resilient financial ecosystem.' The average ticket size of these loans stood at Rs 9,786. Growth in both sanction volume and value slowed compared to the previous years. As of March 2025, fintech loan outstanding stood at Rs 73,311 crore across 4.59 crore loans. Live Events FACE data showed that sanction volume grew by 22% in FY25, compared to 33% in FY24 and 73% in FY23. Sanction value grew by 11% in FY25, slowing from 36% in FY24 and 66% in FY23. The report also highlighted that 66% of the total sanctioned value went to borrowers under the age of 35, reflecting a strong preference for digital credit among younger consumers. Additionally, 39% of sanctioned loans were directed to borrowers in Tier-III towns and beyond—a share that continues to increase steadily. While the average loan size was Rs 9,786, nearly 46% of the total loan value came from tickets above Rs 50,000, indicating the flexibility fintechs offer in catering to varied borrower needs. Notably, 56% of loans went to borrowers with a credit bureau history of five years or more. About 59% of loans were disbursed to customers with mid-to-low risk profiles, suggesting more mature underwriting practices and prudent portfolio management. Women accounted for 16% of the total sanctioned value—a modest but encouraging sign of growing female borrower participation.
