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Time of India
02-07-2025
- 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.'
Hans India
19-06-2025
- Business
- Hans India
Sa-Dhan Launches Toll-Free Number to Strengthen Grievance Redressal in Microfinance Sector
Bengaluru: Amidst growing concern around borrower stress, delinquencies, and the evolving regulatory landscape, Sa-Dhan—the RBI-recognised Self-Regulatory Organisation (SRO) for the microfinance sector—hosted a national conclave today in Bengaluru titled 'Emerging Role of Microfinance in the Changing Financial Landscape.' The day-long event brought together senior leaders, institutional heads, and compliance experts to reflect on the state of microfinance, introduce practical tools for client protection, and engage with emerging challenges including recent policy developments in Karnataka. At the centre of the discussions was the launch of a toll-free grievance redressal number and the release of a Client Grievance Redressal Mechanism (CGRM) manual, developed with M2i Consulting. These steps mark a sector-wide push to improve transparency, client trust and institutional accountability. Delivering the keynote at the inaugural session, Jiji Mammen, Executive Director and CEO of Sa-Dhan, reinforced this view. 'Responsible lending and client protection are at the heart of financial inclusion,' he said. 'A robust grievance redressal mechanism is central to this effort — not just in form, but in spirit. It must be implemented meaningfully to ensure that clients feel heard and supported at every step.' The event brought together senior leaders and compliance heads from across the sector. The first panel reflected on microfinance's role in reaching underserved communities and its resilience through recent disruptions. While the sector comprises only 3% of India's total retail finance market, its impact is significant. Panellists spoke of the need for tailored, tech-enabled solutions that retain the human touch. The CGRM manual, launched by Deepak Alok of M2i, is designed to help especially smaller MFIs build effective internal systems. It includes process flows, escalation protocols and tools to support ongoing training and monitoring. A second panel explored how grievance redressal is becoming central to institutional strategy. Participants from Ujjivan SFB, IDF Financial Services, Spandana Sphoorty and Svamaan Financial Services shared evolving practices—from board-level oversight to mystery audits and gender-sensitive support structures. The new toll-free helpline is managed in-house and currently operates in Hindi and English, with plans to expand to ten regional languages. It serves as a second-level grievance platform—bridging the gap between the MFI and the RBI. Closing the event, Somesh Dayal, Deputy Director at Sa-Dhan, shared plans to roll out the manual across regions over the next six months, through webinars and in-person training sessions for grievance and compliance officers. As borrower protection gains ground in both policy and practice, the conclave underscored the sector's shared commitment: not just to meet regulations, but to strengthen trust and accountability where it matters most—at the client level.
Time of India
18-06-2025
- Business
- Time of India
Microfinance sector introduces new grievance redressal tools for customer protection
To boost customer protection in the microfinance sector, Sa-Dhan , the RBI-recognised Self-Regulatory Organisation (SRO), on Tuesday launched a sector-wide toll-free grievance helpline along with a comprehensive Client Grievance Redressal Mechanism (CGRM) manual. The new toll-free helpline is managed in-house and currently operates in Hindi and English, with plans to expand to ten regional languages, Sa-Dhan said in a statement. It will serve as a second-level grievance platform and bridging the gap between the MFI and the RBI . The CGRM manual has been designed to help smaller MFIs build effective internal systems. It includes process flows, escalation protocols and tools to support ongoing training and monitoring. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Accounting Automation Software Might Help You To Earn More Accounting Automation Software | Search ads Undo During the national conclave held in Bengaluru on the theme 'Emerging Role of Microfinance in the Changing Financial Landscape,' the two initiatives were announced in collaboration with M2i Consulting. The SRO said these efforts aim to build greater transparency, trust, and accountability in microfinance operations. The event revolved around the state of microfinance, practical tools for client protection, and engaging with emerging challenges including recent policy developments in Karnataka. Live Events 'Responsible lending and client protection are at the heart of financial inclusion ,' said Jiji Mammen, Executive Director and CEO of Sa-Dhan, during his keynote address. 'It's important that grievance redressal is not just a process but a meaningful commitment to our clients,' he added. The organisation said that while microfinance forms just around 3% of India's overall retail lending market, its role in supporting underserved communities is seen as critical. Industry leaders from institutions like Ujjivan SFB , Spandana Sphoorty , and Svamaan Financial Services discussed how grievance redressal is becoming central to institutional strategy, with measures such as board-level oversight, gender-sensitive processes, and regular mystery audits.
