Fintech NBFCs accounts 76% total personal loan sanction volumes in 9MFY25

Personal loan

The personal loan sanctions in volume terms accounts for 76 percent for the Fintech non-banking finance companies in first nine months of the current financial year, according to the Fintech Association for Consumer Empowerment (FACE) report.

The report added that FinTech NBFCs account for only 13% of the total personal loan sanction value in FY 24-25 (until December 2024).

Fintech NBFCs sanctioned 8.3 crore loans worth Rs 81,365 crore in FY 24-25 (until December 2024). However, growth is slowing in quarter-on-quarter sanction value, which declined by 15 percent in Q3FY25, compared to Q2FY25, and the overall growth rate for the nine months in FY25 was 16 percent over the comparable period in FY24.

The average ticket size of fintech personal loans stood at Rs 9,758, enabling customers to tap opportunities, manage cash flows and build credit history, report said.

The average ticket size is comparatively lower for Fintech NBFCs compared to its peers like other NBFCs and banks. As per report, average ticket size for banks stood at Rs 441,391 till December 2024, and for other NBFCs it stood at Rs 94,430.

In the FinTech NBFC space, 39 percent of ticket size were lower than Rs 25,000, 16 percent are loans between Rs 25,000 and Rs 50,000, and 13 percent of Rs 50,000 and Rs 1 lakh.

Further, 12 percent loans have ticket size of Rs 1 lakh and Rs 2 lakh, and 16 percent loans have ticket size of Rs 2 lakh and Rs 5 lakh and 4 percent are loans having ticket size of Rs 5 lakh and above, report added.

Higher-value loans were increasingly granted to customers with a longer credit history, ensuring risk mitigation while fostering financial inclusion, report added.

In FY 24-25 (until Dec 2024), Fintech NBFCs allocated 55 percent of their sanctioned value to customers with a credit bureau vintage of over 5 years. Lending to newer customers (bureau vintage of less than 1 year) rose to 9% in FY 24-25 compared to 5 percent in FY 23-24.

The total outstanding portfolio of Fintech NBFCs stood at Rs 72,775 crore as of Dec 2024, with improving credit quality. Fintech NBFCs accounted for 42 percent of all active personal loan accounts but only 5 percent of the total personal loan outstanding value, underscoring their role in small-value lending.