Over 70% of fintechs' loan book unsecured: Financial Stability Report

Unsecured personal loans dominate fintech lending, with younger borrowers accounting for over half the exposure, as the RBI highlights growth and asset quality trends

Unsecured loans form more than 70 per cent of fintechs’ total loan book, and more than half of them were extended to borrowers under 35 years of age, the Reserve Bank of India (RBI) said in its Financial Stability Report (FSR).

What constitutes unsecured loans in fintech portfolios?

Unsecured loans are personal loans and unsecured business loans.

How has fintech lending grown within the NBFC consumer segment?

According to the RBI, fintech firms have been increasing their footprint in retail lending, which now forms 8.9 per cent of total non-banking financial company (NBFC) consumer segment loans, up from 7.3 per cent in September 2023.

 

What drove fintechs’ rapid loan growth over the past year?

Between September 2024 and September 2025, fintechs registered a robust growth of 36.1 per cent, largely driven by personal loans that formed more than half of their outstanding loan portfolio and are rising both in terms of value and volume.

What does the RBI say about asset quality trends?

Having said that, the RBI highlighted that, in terms of asset quality, the impairment of personal loans in the fintech firms’ portfolio has declined over the past one year even as credit has expanded rapidly.

Where are asset quality risks more pronounced?

“Compared to other NBFCs, however, the impairment in the small-ticket loans (up to Rs 50,000) was relatively higher. Furthermore, the impairment among borrowers who have availed unsecured loans from five or more lenders was also elevated,” the RBI highlighted.