The data shows fintech lenders served 23.3 million consumers as of December 2024 — up from 20.2 million a year earlier. Their outstanding balances reached ₹1.3 lakh crore, making up just over 1% of all retail credit balances in India.
This growth highlights fintech’s
deeper push into financially underserved segments.
“The sector has reshaped access to credit using digital innovation. Now, sustained growth depends on broader product offerings and data-driven personalization,” said Bhavesh Jain, MD & CEO, TransUnion CIBIL.
Repeat borrowers are rising, but so are risks
Fintechs are not just attracting new borrowers but retaining existing ones.
Among personal loans above ₹50,000, 48% of borrowers in December 2024 were repeat customers, up from 43% a year ago.
However, these loyal users are also showing higher delinquency rates. Vintage delinquencies rose by 20 basis points year-on-year to 4.7% in June 2024. Experts suggest stronger underwriting is needed, even among seasoned borrowers.
“As more young and rural users come on board, the industry must remain customer-centric while managing risks responsibly,” said Sugandh Saxena, CEO of the fintech Association for Consumer Empowerment (FACE), an RBI-recognized body.
Volume over value
The average ticket size for fintech personal loans has dropped across all risk categories. For above-prime borrowers, it fell from ₹55,000 in Q4 2023 to ₹44,000 in Q4 2024. In contrast, non-fintech lenders saw average loan sizes rise.
This drop suggests fintechs are now focusing on higher loan volumes and wider reach rather than bigger disbursements.
Small-ticket personal loans (STPLs) continue to lead. They made up 92% of fintech originations in December 2024 and 89% of all STPLs issued in India. The trend shows that micro-credit remains at the core of digital lending.
Business loans show stress
While personal loan performance remains stable, business loans are showing signs of stress. Early delinquencies (30+ days past due within six months of origination) jumped from 3% in June 2023 to 8.6% in June 2024. Long-term delinquencies also rose for both business loans and loans against property.
This indicates that fintechs need tighter portfolio monitoring, especially as they expand into secured lending.
