Fintech’s Transformative Role in Lending: Driving Inclusion and Growth
Experian India’s latest white paper, “Small is BIG: How Fintechs are Revolutionising Lending”, explores how fintech companies are at the forefront of reshaping the lending landscape in India. By tapping into underserved segments, fintech companies have captured a dominant share of the personal and business loan markets. As technology accelerates financial inclusion, fintech industry face both unprecedented opportunities and challenges in maintaining asset quality and managing risk.
This white paper highlights the key trends driving fintech’s rapid growth and provides actionable insights for navigating the evolving credit ecosystem. With advanced technologies such as AI and blockchain, fintech companies are optimizing operations, reducing friction, and setting new standards for the future of digital lending in India.
Here are some key insights:
52% Market Share in Personal Loans
Fintechs now hold a commanding 52% market share in personal loans, primarily catering to NTC individuals and underserved communities with small-ticket loans under ₹50,000.
₹248,006 Crores Facilitated in Personal Loans
Fintech companies have disbursed ₹248,006 crore in personal loans by March 2024, driving financial inclusion across rural and semi-urban regions.
₹28,607 Crores in Business Loans
Fintechs have extended ₹28,607 crore in business loans, empowering small businesses and entrepreneurs previously underserved by traditional financial institutions.
Growth in Key States
In FY 2024, fintechs achieved significant growth in personal loans in states like Bihar (24%), Tamil Nadu (21%), and Uttar Pradesh (20%). Business loan growth was equally impressive, with Karnataka (133%), Uttar Pradesh (118%), and Bihar (67%) leading the way.