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Fintech NBFCs Approved 83 Million Loans, Facing Growth Stagnation in FY25

Fintech and Financial Services

Business Honor
28 March, 2025

Fintech NBFCs approved 83 million loans in FY25, but growth stagnated with declining Q3 sanctions.

According to data from the Fintech Association for Consumer Empowerment(FACE), a self-regulatory organization for the fintech sector (SRO-FT), fintech non-banking financial companies (NBFCs) approved 83 million loans totaling Rs 81,365 crore in the first three quarters of the fiscal year 2025 (FY25).

During the same time period, the sanction volume issued by banks and other NBFCs was 9 million and 18 million, respectively. Nonetheless, the approved loan amounts of Rs 1.66 trillion and Rs 3.91 trillion, respectively, continued to be substantial. With an average ticket size of Rs 9,758 per loan, fintech loans made up 76% of the sanction volume but only 13% of the sanction value.

Fintech NBFC growth is stagnating, according to FACE. Additionally, it stated that the third quarter of FY25 (Q3FY25) had a 15% decrease in the quarter-on-quarter (Q-o-Q) sanction amount when compared to the prior quarter.

Sugandh Saxena, the CEO of FACE, stated that more than two-thirds of loans are directed toward young customers as well as those in Tier-II and Tier-III cities. He highlighted that fintech plays an important role in supporting the country's growing aspirations and flexibility. Additionally, he highlighted FACE's dedication to advancing the fintech industry through promoting moral conduct, advancement, and client protection, all of which ultimately help stakeholders and customers.

According to the report's data, the total value of the fintech NBFCs' outstanding portfolio as of December 2024 was Rs 72,775 crore. It further said that 15% of personal loans over the same time period were made through fintech. Compared to 14% in FY24 and 13% in FY23, this was a little gain.