Archive · 2 Jun 2025
Fintech Lending Sees Growth in Young Borrowers and Rising Risks
Fintech lending in India is growing, with many young people under 30 and people in rural areas getting loans.
These loans are becoming more popular, and a lot of borrowers are taking out loans again.
However, more people are having trouble paying them back.
The size of loans is getting smaller as more people get loans.
Small loans are still the most common type of loan given out by fintech companies.
But business loans are showing more problems, suggesting fintech companies need to keep a closer watch on these loans.
Over 60% of fintech borrowers in India are under the age of 30.
Fintech lenders served 23.3 million consumers by December 2024.
Outstanding fintech balances reached ₹1.3 lakh crore, representing over 1% of India's retail credit.
Delinquency rates rose to 4.7% in June 2024 among personal loans.
Early delinquencies on business loans jumped to 8.6% by June 2024.
- Who
- Fintech lenders, borrowers (primarily young and rural), and industry analysts such as TransUnion CIBIL and the Fintech Association for Consumer Empowerment.
- What
- The fintech lending sector in India is experiencing growth, with shifts in borrower demographics and increasing delinquency rates.
- When
- Data is current as of December 2024 and June 2024, reflecting changes over the year.
- Where
- India
- Why
- The growth in fintech lending is driven by digital innovation, but concerns arise due to increasing delinquencies and the need for more customer-centric risk management.
Industry Experts
Fintech Lenders
Risk Management vs. Growth
Industry Experts
Industry experts suggest that stronger underwriting practices are necessary.
Fintech Lenders
Fintechs aim for broader product offerings and data-driven personalization to continue growth.
- Fintech Consumers (Dec 2024)
- 23.3 million
- Outstanding Fintech Balances
- ₹1.3 lakh crore
- Fintech Borrowers Under 30
- 60%
- Delinquency Rate (June 2024)
- 4.7%
- Early Delinquencies Business Loans (June 2024)
- 8.6%
- Repeat Personal Loan Borrowers (Dec 2024)
- 48%