Fintech Firms in India Power Youth Loans, Says FACE Report

Fintech companies in India are playing a big role in giving loans to young people, according to a new report by the Fintech Association for Consumer Empowerment (FACE), which is an RBI-recognized Self-Regulatory Organisation. The report shows that 66% of loans given by fintech firms went to customers under the age of 35. This highlights how strongly these companies are reaching young borrowers across the country.

The study covered data from credit bureaus between April 2018 and March 2025. It found that fintechs, by giving out small loans, are opening up new markets and making it easier for many people to access formal credit. Even though fintechs only make up 12% of the total personal loan market value, they handle more than 74% of all loans.

In the financial year 2024-25 alone, fintech NBFCs sanctioned personal loans worth ₹1.06 lakh crore across 10.9 crore accounts. This means they continue to dominate the retail credit space by volume. Their total outstanding loan portfolio stood at ₹73,311 crore as of March 2025, which is a slight 0.7% increase from last year. During this period, the value of loans sanctioned by them rose by 11%, while the number of loans jumped by 22%.

The report also pointed out that 39% of these loans were given to people living in Tier III towns and smaller places, showing growing demand beyond big cities. The average loan amount was ₹9,786, although 46% of the total loan value came from loans larger than ₹50,000. About 56% of the loans were given to people who already had a credit history of five years or more, and 59% went to borrowers with medium-to-low risk scores. Women borrowers accounted for 16% of the total value of fintech loans.