Over 70% of fintechs’ loan book unsecured: Financial Stability Report | Finance News – Business Standard

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

Reserve Bank of India, RBI

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

Unsecured loans are personal loans and unsecured business loans. According to RBI, fintech firms have been increasing their footprint in retail lending, which now forms 8.9 per cent of total NBFC consumer segment loans, up from 7.3 per cent in September 2023. 

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

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