India’s fintech lenders draw younger, more rural customer base: Report

Mumbai, May 29 The fintech sector lenders are drawing a younger and more rural customer base, with 61 per cent of borrowers being under the age of 30, and 24 per cent residing in rural areas, a report showed on Thursday.

The share of prime and above-prime consumers in fintech originations has also increased steadily, reaching 62 per cent in December 2024 from 60 per cent in December 2023 and 55 per cent in December 2022. Notably, however, average ticket sizes have declined across all risk tiers, according to the report by TransUnion CIBIL.

India’s fintech lending sector is undergoing a transformation, driven not just by volume, but by a fundamental shift in borrower demographics, as they increasingly serve younger and more rural populations.

This marks a significant evolution in the fintech customer base, reflecting the sector’s growing role in democratising access to credit across India’s diverse population.

According to the report for the quarter ending December 2024, fintech lenders now serve over 23.3 million consumers — up from 20.2 million in December 2023 and 14.4 million in December 2022.

Outstanding balances reached Rs 1.3 trillion, with fintechs accounting for 1.03 per cent of total retail credit balances, highlighting lenders’ expanding role in India’s credit ecosystem.

These trends highlight a significant opportunity for fintech lenders to deepen their reach in underserved segments, positioning them well for sustained growth in India’s evolving credit landscape.

“The fintech lending sector has played a vital role in reshaping India’s financial landscape by delivering faster and more accessible credit through innovative digital technology,” said Bhavesh Jain, MD and CEO, TransUnion CIBIL.

This progress has expanded financial inclusion, reaching millions across diverse demographics and geographies.

“As the sector continues to evolve, sustained growth will rely on broadening product offerings and adopting data-driven approaches to provide more personalised financial solutions,” he maintained.

Fintechs are also seeing stronger customer retention in the personal loan segment, especially in ticket sizes above Rs 50,000. As of December 2024, 48 per cent of borrowers in this segment had prior credit relationships with the same lender, higher than the 43 per cent who had that relationship in December 2023.

“FinTechs continue to reach ever more people, especially younger and unaddressed segments. As the industry grows, it is important that lending practices stay customer-centric and respond responsibly to evolving risks,” said Sugandh Saxena, CEO, FinTech Association for Consumer Empowerment (FACE).

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