Fintechs disburse 11 crore personal loans in FY25 amid growing defaults: Report
Fintech lenders disbursed nearly 10.9 crore personal loans worth ₹1.06 lakh crore in FY2024-25, according to data by the Fintech Association for Consumer Empowerment (FACE), reported ET.
Fintech’s accounted for just 12% of the personal loan market by value. They dominated volumes, controlling 74% of all loans disbursed during the year. The average loan size stood at ₹9,786, whereas 46% of the loans by value exceeded ₹50,000.
The data further elaborated that young borrowers continued to drive demand, with 66% of total sanctioned loan value going towards individuals below the age of 35. Furthermore, Fintechs also expanded their footprint in non metro markets, 39% of loans were disbursed in Tier III towns and beyond.
Even after the scale of outreach there are clear signs of stress. The 90+ days past due delinquency rate rose to 3.6% by the month of March 2025, scaling a six quarter high. This uptick points to emerging repayment risks, predominantly in the small ticket lending segment.
Fintech lenders shift focus to safer borrowers amid regulatory push
On the positive side, risk management, effective money management appears to be improving. About 59% of loans were issued to borrowers classified as mid to low risk. Women borrowers accounted for 16% of the total sanctioned loan value, reflecting slow but steady growth in gender inclusive lending.
These important developments must be kept in mind by aspirational borrowers, as they provide a clear direction with regards to the current lending environment in the country.
FACE further noted that the sector is gaining from tighter regulatory oversight by the Reserve Bank of India (RBI) and a maturing self regulatory framework. Hence, as the fintech lending ecosystem continues to grow, balancing sustainable credit quality along with growth will be critical.
Disclaimer: The information is based on data published by the Fintech Association for Consumer Empowerment (FACE) for FY2024–25 and reflects trends observed in India’s digital lending ecosystem.
