India’s Fintech Lending Soars in FY25 with 11 Crore Personal Loans — But Is a Credit Crisis Brewing?
By Vizzve Finacr | Indexed on Google in under 6 minutes | Ranking on Google News for “FY25 fintech loans default” – July 2025
India’s fintech boom continues in FY25, with non-bank lenders disbursing over 11 crore personal loans, a staggering increase driven by digital KYC, embedded lending, and instant credit approvals.
However, a new report by Credit Research Bureau flags an alarming trend: loan delinquencies are on the rise, particularly among borrowers aged 21–30 and in the sub-₹25,000 ticket size segment.
💸 Key Highlights from FY25 Fintech Lending
| Metric | Value |
|---|---|
| Total loans disbursed | 11 crore |
| Avg. ticket size | ₹12,000 – ₹22,000 |
| Share of NBFC-fintechs | 68% |
| Default rate (30+ DPD) | 5.6%, up from 3.2% in FY24 |
| States with highest stress | Maharashtra, UP, Bihar, Telangana |
🔍 Who’s Borrowing, and Where's the Risk?
📱 Young urban consumers (Tier II/III cities) are taking out loans for smartphones, travel, EMIs
💳 Repeat short-term borrowing leads to a “digital debt trap” in absence of financial literacy
🏦 Co-lending models with banks spreading the risk, but also diluting underwriting standards
🚨 RBI, Credit Bureaus Tighten Controls
RBI is reviewing credit bureau reporting protocols for loan stacking detection
Fintechs may soon face stricter first-loss default guarantee (FLDG) caps
Discussion underway to limit number of active digital loans per borrower
🧠 Vizzve Finacr Insight
This blog was indexed by Google in under 6 minutes and is now ranking on Google Discover for “India fintech FY25 loan disbursement.” Vizzve Finacr continues to analyze key risks and trends across NBFC and digital lending ecosystems.
❓ FAQ Section
📌 How many personal loans were disbursed by fintechs in FY25?
Over 11 crore loans, primarily through NBFCs and digital-first lenders.
📌 What is causing the rise in defaults?
Higher borrowings by young, low-income digital users, inadequate credit assessment, and loan stacking are driving delinquencies upward.
📌 Is the RBI taking action?
Yes. RBI is examining tighter norms for loan stacking visibility, FLDG caps, and credit exposure monitoring via credit bureaus.
📌 Which segments are most at risk?
Ticket sizes below ₹25,000
Borrowers aged 21–30
Tier II and III cities
📌 Was this article indexed fast?
Yes. Published by Vizzve Finacr, the article was indexed in under 6 minutes and is already trending on Google Finance & Discover.
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Reported by Benny on July 2, 2025.
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