Fintechs capture 57% share of small personal loans as stress mounts: RBI report

RBI's Financial Stability Report data showed fintech lenders held a 56.8% share of personal loans under Rs 50,000 as of March 2026, with credit growing 41.6% YoY versus 20.1% for the overall segment. However, fintech-origin small-ticket loan delinquencies rose to 6.4%, higher than 5.7% for NBFCs and 4.1% for banks, with unsecured loans making up 70.5% of fintech books and nearly half extended to borrowers under 35. Broader consumer credit metrics improved, while microfinance credit expanded for the first time after seven quarters of decline though the borrower base shrank by 22.7 lakh.