Small-Ticket Loans Power India's Credit Boom Amid Digital Shift

Mumbai: Fintech NBFCs have emerged as key credit providers, extending a significant volume of over 83 million loans to individuals previously overlooked by traditional banks. While the sheer volume of digital lending, representing 76% of all loans, is compelling, the average ticket size of `9,758 reveals a strategic focus on high-frequency credit access.

Talking to Bizz Buzz, Tashwinder Singh, CEO & MD at Niyogin Fintech says, "This isn't merely about numerical dominance; it's about democratising financial access. The 13 per cent share of sanctioned value, juxtaposed with the loan volume, highlights a deliberate strategy to serve the micro-credit needs of a vast, underserved population."

The observed 15 per cent quarter-on-quarter decline in sanctioned value should not be misconstrued as a downshift. Instead, it signals a vital recalibration. This period allows fintech NBFCs to refine their risk assessment models, enhance their lending frameworks, and ensure sustainable growth. We are witnessing the evolution of a technology-driven, resource-efficient model that is building a robust, resilient, and inclusive financial architecture. Fintech NBFCs are not merely filling a gap; they are defining the future of financial access, driving economic growth, and empowering millions.

Shams Tabrej, CEO at Ezeepay says, "Digital lending has become a leading source of financial inclusion, with fintech NBFCs sanctioning 83 million loan applications representing 76% of the total sanctioned volume of loans during the first three-quarters of FY25. The data from the Fintech Association for Consumer Empowerment showcases its growing role in enhancing access to credit in India. The average ticket size of this loan, which was `9,758, indicates increasing small-ticket credit demand, supporting individual and business clients promptly meeting their financial requirements."

It demonstrates an ongoing trend in the economy's digital transition. While technologies gain traction, responsible lending, and secure digital transactions should remain bylines that all stakeholders must follow for maximum resource participation in financial inclusion.