Latest news with #SugandhSaxena
Time of India
30-06-2025
- Business
- Time of India
Fintech-driven personal loans show rising stress, delinquencies at 6-quarter high
Small-value personal loans disbursed by fintech companies continue to show signs of stress. Data released by the Fintech Association for Consumer Empowerment (FACE), the Reserve Bank of India (RBI)-recognised self-regulatory organisation in the fintech sector, shows that personal loans overdue by more than 90 days rose to 3.6% at the end of March 2025—the highest level in the last six quarters. The biggest pressure is coming from loans disbursed in Tier-3 cities and beyond, which contributed 4.2% to the delinquency rate, followed by rural areas at 4.1% and semi-urban regions at 3.8%. In terms of borrower age, those under 25 accounted for 6.1% of delinquent loans, while the 26–35 age group contributed 3.6%. Out of the total personal loan market of Rs 8.80 lakh crore, fintech NBFCs held a 74% share by volume—amounting to 10.9 crore loans—and a 12% share by value at Rs 1.06 lakh crore as of March 2025. 'Fintech lenders are clearly becoming the preferred choice for borrowers across age groups, risk profiles, and geographies,' said Sugandh Saxena, CEO of FACE. 'With customised, digital-first offerings and a solid regulatory foundation guided by the RBI's Digital Lending framework and our self-regulatory efforts, the sector is well-positioned to offer responsible credit at scale. Particularly encouraging is the growing uptake among young borrowers and consumers from Tier-III towns and beyond, signalling the potential for a more inclusive and resilient financial ecosystem.' The average ticket size of these loans stood at Rs 9,786. Growth in both sanction volume and value slowed compared to the previous years. As of March 2025, fintech loan outstanding stood at Rs 73,311 crore across 4.59 crore loans. Live Events FACE data showed that sanction volume grew by 22% in FY25, compared to 33% in FY24 and 73% in FY23. Sanction value grew by 11% in FY25, slowing from 36% in FY24 and 66% in FY23. The report also highlighted that 66% of the total sanctioned value went to borrowers under the age of 35, reflecting a strong preference for digital credit among younger consumers. Additionally, 39% of sanctioned loans were directed to borrowers in Tier-III towns and beyond—a share that continues to increase steadily. While the average loan size was Rs 9,786, nearly 46% of the total loan value came from tickets above Rs 50,000, indicating the flexibility fintechs offer in catering to varied borrower needs. Notably, 56% of loans went to borrowers with a credit bureau history of five years or more. About 59% of loans were disbursed to customers with mid-to-low risk profiles, suggesting more mature underwriting practices and prudent portfolio management. Women accounted for 16% of the total sanctioned value—a modest but encouraging sign of growing female borrower participation.
Hans India
29-05-2025
- Business
- Hans India
India's fintech lenders draw younger, more rural customer base: Report
The fintech sector lenders are drawing a younger and more rural customer base, with 61 per cent of borrowers being under the age of 30, and 24 per cent residing in rural areas, a report showed on Thursday. The share of prime and above-prime consumers in fintech originations has also increased steadily, reaching 62 per cent in December 2024 from 60 per cent in December 2023 and 55 per cent in December 2022. Notably, however, average ticket sizes have declined across all risk tiers, according to the report by TransUnion CIBIL. India's fintech lending sector is undergoing a transformation, driven not just by volume, but by a fundamental shift in borrower demographics, as they increasingly serve younger and more rural populations. This marks a significant evolution in the fintech customer base, reflecting the sector's growing role in democratising access to credit across India's diverse population. According to the report for the quarter ending December 2024, fintech lenders now serve over 23.3 million consumers — up from 20.2 million in December 2023 and 14.4 million in December 2022. Outstanding balances reached Rs 1.3 trillion, with fintechs accounting for 1.03 per cent of total retail credit balances, highlighting lenders' expanding role in India's credit ecosystem. These trends highlight a significant opportunity for fintech lenders to deepen their reach in underserved segments, positioning them well for sustained growth in India's evolving credit landscape. 'The fintech lending sector has played a vital role in reshaping India's financial landscape by delivering faster and more accessible credit through innovative digital technology,' said Bhavesh Jain, MD and CEO, TransUnion CIBIL. This progress has expanded financial inclusion, reaching millions across diverse demographics and geographies. 'As the sector continues to evolve, sustained growth will rely on broadening product offerings and adopting data-driven approaches to provide more personalised financial solutions,' he maintained. Fintechs are also seeing stronger customer retention in the personal loan segment, especially in ticket sizes above Rs 50,000. As of December 2024, 48 per cent of borrowers in this segment had prior credit relationships with the same lender, higher than the 43 per cent who had that relationship in December 2023. 'FinTechs continue to reach ever more people, especially younger and unaddressed segments. As the industry grows, it is important that lending practices stay customer-centric and respond responsibly to evolving risks,' said Sugandh Saxena, CEO, FinTech Association for Consumer Empowerment (FACE).
