Fintech Non-Banking Financial Companies (NBFCs) have played a key role in providing credit access across India. These companies provide easy and fast loans to users. Some of the Fintech apps offer loans in 5 minutes. Now a report has been released that shows the number and amount of loans sanctioned by these Fintech companies.
According to data from the Fintech Association for Consumer Empowerment (FACE), a self-regulatory organization (SRO) for the fintech sector, these NBFCs sanctioned a staggering 83 million loans in the first three quarters of the financial year 2025 (FY25), with a total loan value amounting to ₹81,365 crore.
While fintech NBFCs dominated the number of loans sanctioned, traditional NBFCs and banks processed fewer loans but with significantly higher values. During the same period:
- NBFCs sanctioned 18 million loans, totaling ₹1.66 trillion.
- Banks sanctioned 9 million loans, with a total value of ₹3.91 trillion.
This highlights that although fintech NBFCs processed a much larger number of loans, their loan amounts were smaller. The average ticket size for fintech NBFC loans was just ₹9,758 per loan, which shows that these companies are primarily catering to individuals seeking small-ticket loans.
Fintech NBFCs have shown significant penetration in the lending market:
- Fintech loans accounted for 76% of the total number of loans sanctioned but only 13% of the total loan value, reflecting their focus on microloans.
- Their participation in the personal loans segment has also been growing, with their share rising to 15% in FY25, up from 14% in FY24 and 13% in FY23.
Decline in Growth Momentum
Despite their growing presence, the report noted a slowdown in growth. The quarter-on-quarter (Q-o-Q) loan sanction value declined by 15% in the third quarter of FY25 (Q3FY25) compared to the second quarter. This suggests that while fintech NBFCs are still expanding, the pace has moderated.
This may also be because big banks are also now offering loans easily and quickly. Large Banks such as SBI, PNB, BOB, Canara Bank, Union Bank have improved the technology of their mobile apps and are offering pre-approved personal loans. Bank Customers can easily available loans through these apps without visiting Bank branches.
Fintech NBFCs are helping bridge the credit gap in India’s smaller towns and cities. Over two-thirds of the loans sanctioned were taken by young borrowers and residents of Tier-II and Tier-III cities, reflecting fintech’s role in meeting the aspirations of underserved populations.
Sugandh Saxena, CEO of FACE, emphasized the importance of fintech in shaping India’s financial landscape:
“With over two-thirds of loans catering to young and Tier-II and Tier-III city customers, fintech is key to meeting the country’s growing aspirations and resilience. At FACE, we focus on contributing to the fintech journey by championing responsible conduct, innovation, and customer protection, which bring value to customers and all stakeholders.”
Outstanding Loan Portfolio
As of December 2024, the total outstanding loan portfolio of fintech NBFCs stood at ₹72,775 crore, showcasing the sector’s increasing footprint in India’s lending ecosystem.
