NBFC-Fintech Lending Surges 21.2% in June as Bigger Loans Drive Growth

Indian non-banking financial company fintechs saw their portfolio outstanding expand 21.2 per cent year‑on‑year as of June 2026, driven by stronger underwriting and a shift toward higher‑ticket credit, a report said on Wednesday. NBFC Fintechs entered a maturing phase marked by calibrated lending and they now account for about 9 per cent of total NBFC portfolio outstanding, the report from CRIF High Mark and the Unified Fintech Forum (UFF) said.

"While personal loans continue to anchor the segment, unsecured business lending is emerging as a significant opportunity, particularly in the Rs 1 lakh– Rs 5 lakh range," the report said. Meanwhile, fintech lenders are expanding their reach beyond the largest urban centres, indicating a broader role in extending formal credit access across emerging markets.

Originations in Q1 FY27 reached Rs 79.9 thousand crore, up 53 per cent in value and 21 per cent in volume YoY, driven largely by personal loans above Rs 1 lakh. The share of new-to-credit borrowers of NBFC Fintech has moderated from 14.2 per cent in June 2024 to 11.4 per cent in June 2026, indicating a more selective and calibrated lending approach.

The share of loans above Rs 1 lakh in portfolio outstanding rose from 21.6 per cent in June 2024 to 26.3 per cent in June 2026. Personal loan originations from BT100 cities increased from 32.1 per cent to 34.5 per cent in value between Q1 FY25 and Q1 FY27, and that of unsecured business loans rose from 23.3 per cent to 30 per cent. Borrowers aged 26–35 years account for 43.5 per cent of the NBFC Fintech borrower base as of June 2026, while the 36–50 age group grew 31.7 per cent YoY, signalling a gradual shift towards more mature borrowers.

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