Mumbai: India’s NBFC Fintech sector has witnessed strong double-digit growth, expanding its portfolio outstanding by 34.9% year-on-year (YoY) as of June 2025, outpacing the overall NBFC industry’s growth rate of 24.5%, according to the Finsight Report 2025 by CRIF High Mark and the Unified Fintech Forum (UFF).
The share of NBFC Fintechs in the total NBFC market rose from 7.2% in June 2023 to 9% in June 2025, underscoring their growing significance in India’s credit landscape.
Rapid Portfolio and Borrower Growth in NBFC Fintech Sector
The NBFC Fintech portfolio’s rapid expansion has been driven by a 25.6% YoY increase in active loans – significantly higher than the industry average of 15.1%. The segment continues to focus on small-ticket, short-term unsecured credit, catering to underbanked and new-to-credit borrowers.
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Unsecured loans, including personal loans and unsecured business loans, account for about 70% of fintech portfolios. Personal loans above ₹1 lakh are witnessing increasing traction, while unsecured business loans are trending toward smaller ticket sizes, facilitating greater access for micro and small enterprises.
The borrower base for NBFC Fintechs expanded to 2.8 crore active borrowers as of June 2025, representing a 16.8% YoY growth.
Notably, 34% of these borrowers are exclusive to fintech lenders, emphasizing their crucial role in improving last-mile financial inclusion. Over 65% of borrowers are aged 35 years or younger, reflecting the youth-driven nature of India’s digital credit ecosystem.
NBFC Fintech Deepen Penetration into Emerging Cities
NBFC Fintechs are witnessing strong traction beyond metropolitan markets. In Beyond Top 100 (BT100) cities, personal loan originations increased from 28.4% in Q1 FY24 to 33.9% in Q1 FY26.
Similarly, unsecured business loan originations in these regions nearly doubled – from 29.9% to 43% during the same period – signifying the segment’s rapid rural and semi-urban expansion.
State-level data indicates that Maharashtra, Karnataka, and Tamil Nadu collectively contribute around 35% of total fintech lending portfolios. Meanwhile, Uttar Pradesh (45.7% YoY growth), Rajasthan (35.4% YoY), and Telangana (35.1% YoY) have outperformed the national average, reflecting strong fintech adoption in emerging states.
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NBFC Fintech Risk Metrics Show Early Signs of Stabilization
The NBFC Fintech segment is also demonstrating improving asset quality trends. For small-ticket personal loans (≤₹1 lakh), early delinquencies (PAR 31–90) have declined from 4.9% in June 2023 to 4.1% in June 2025, while late-stage delinquencies (PAR 91–180) have improved from 7.6% to 4.8%.
The report notes that risk migration is becoming more visible in larger-ticket unsecured business loans, though the proportion of very-low-risk borrowers has increased across both fintech and traditional NBFC portfolios.
Sachin Seth, Chairman, CRIF High Mark, and Regional Managing Director – CRIF India & South Asia, said, “Fintech NBFCs are redefining credit access by offering small-ticket loans at scale, deepening financial inclusion in semi-urban and rural regions. This collaboration with UFF underscores how the segment is not only growing rapidly but also improving in credit quality, particularly in personal loans.”
He added, “With more than 65% of borrowers aged 35 years or below, NBFC Fintechs are reshaping India’s credit landscape through technology-driven innovation and responsible lending.”
Jatinder Handoo, CEO, Unified Fintech Forum, stated, “Fintech lenders are enabling broader financial inclusion by offering easy access to credit for unbanked and underbanked populations. However, maintaining robust risk management and customer protection will be critical for sustainable growth. At UFF, we advocate for industry-led frameworks grounded in client centricity and our Code of Conduct.”
NBFC Fintech Ecosystem Poised for Next-Phase Growth
The Finsight Report 2025 signals a defining phase for India’s NBFC Fintech ecosystem, highlighting its growing role in democratizing credit access, strengthening financial resilience, and driving inclusion through data-led lending practices and regulatory collaboration.
