Mumbai, 10th October, 2025: CRIF High Mark and the Unified Fintech Forum (UFF) unveils the first edition of Finsight Report 2025, a comprehensive study of India’s NBFC Fintech ecosystem. Drawing on data from over 120 fintech lenders and benchmarking against the broader NBFC industry, the report provides an in-depth view of portfolio growth, product trends, borrower profiles, geographic expansion, and risk dynamics shaping the sector.
Key Takeaways
- Rapid Portfolio Growth: NBFC Fintechs grew their portfolio outstanding by 34.9% YoY as of June 2025, outpacing the overall NBFC industry’s 24.5% growth. Their share of the total NBFC market rose from 7.2% in June 2023 to 9% in June 2025.
- Small-Ticket Lending Driving Expansion: Active loans for fintech NBFCs increased 25.6% YoY, well above industry growth of 15.1%. The segment continues to specialize in short-term, small-ticket unsecured credit.
- Product Mix: Unsecured loans (personal loans and unsecured business loans) account for 70% of fintech portfolios. Personal loans above ₹1 lakh are gaining traction, while unsecured business loans are shifting toward smaller ticket sizes, improving access for micro and small borrowers.
- Borrower Base Expansion: The fintech borrower base grew to 2.8 crore active borrowers (16.8% YoY growth). About 34% are exclusive to fintech lenders, underscoring their role in last-mile access. Borrowers are predominantly younger, with over 65% aged ≤35 years.
- Geographic Penetration: NBFC Fintechs are expanding rapidly beyond metros. In Beyond Top 100 (BT100) cities[1], personal loan originations rose from 28.4% in Q1 FY24 to 33.9% in Q1 FY26. For unsecured business loans, BT100 volumes nearly doubled from 29.9% to 43% over the same period.
- Risk Trends: Portfolio quality is showing early signs of stabilization. For small-ticket personal loans (≤₹1 lakh), early delinquencies (PAR 31–90) improved from 4.9% in June 2023 to 4.1% in June 2025, and late-stage delinquencies (PAR 91–180) declined from 7.6% to 4.8%. Risk migration is visible toward larger-ticket unsecured business loans, while very-low-risk borrower share has increased across both NBFC Fintechs and traditional NBFCs.
- State-Level Growth: Maharashtra, Karnataka, and Tamil Nadu remain the largest fintech lending markets, together accounting for ~35% of portfolio outstanding. Uttar Pradesh (45.7% YoY fintech growth), Rajasthan (35.4% YoY) and Telangana (35.1% YoY) outpaced the national average (34.9% YoY), highlighting strong traction in emerging states.
Sachin Seth, Chairman, CRIF High Mark; Regional Managing Director – CRIF India and South Asia said “Fintech NBFCs are redefining credit access by offering small-ticket loans at scale, enabling deeper penetration into semi-urban and rural markets. This report with UFF highlights how the segment is not only growing rapidly but also showing early signs of improving credit quality especially in personal loans.” He further adds “With over 65% of their borrowers aged 35 years or below, NBFC Fintechs are expanding credit access to younger Indians and shaping a more inclusive and resilient lending ecosystem, supported by technology-led innovation and responsible credit practices”.
Jatinder Handoo, CEO, Unified Fintech Forum, said “Fintech Lenders are making it easier for previously unbanked and underbanked masses to access credit on a scale. This analysis makes it clear that they play a big part in democratisation of financial services, but there is also a need for better risk management, and customer protection. At UFF, we believe that the best way to make sure that fintech-led growth is open, strong, and long-lasting is for industry to operate within the framework of client centricity and UFF’s Industry Code of Conduct.”