Young Borrowers Drive Fintech Lending Boom in India: FACE Report
A new FACE report reveals 66% of Indian fintech loan value went to customers under 35, underscoring youth-led digital credit growth.
Fintech lending in India is increasingly being shaped by young borrowers, according to a new report from FACE (Fintech Association for Consumer Empowerment). The study reveals a significant generational trend that’s reshaping the personal loan market.
66% of Loans Go to Under-35 Borrowers
The FACE report shows that 66% of loan value sanctioned by fintechs went to customers aged below 35 years. Clearly, fintech lending resonates strongly with India’s young population, especially in urban and semi-urban centers.
The report, based on credit bureau data from April 2018 to March 2025, sheds light on how fintechs are revolutionising access to credit. While traditional banks dominate in terms of loan size, fintech companies drive 74% of total loan volumes, showing their strong presence in small-ticket lending.
Smaller Loans, Bigger Reach
Importantly, fintech lending is not just about big cities anymore. These companies are serving a wider customer base across Tier III cities and beyond. By offering customised digital loans, fintechs are unlocking credit access for underbanked and new-to-credit segments.
Moreover, despite holding only 12% of total market value, fintech lenders dominate the volume game. They’re approving more loans, more frequently, to more people — especially the youth. This approach is transforming the way India borrows.
Digital Lending Meets Young India
According to FACE CEO Sugandh, “The report shows assorted offerings across ticket sizes, demographics, and risk profiles make fintechs attractive to borrowers.” These digital lenders are combining speed, convenience, and personalisation to build trust and attract the tech-savvy generation.
Furthermore, Sugandh highlighted that “Fintech lending helps millions navigate economic challenges through smart, digital borrowing tools.” As a result, many young Indians now prefer app-based, instant loan disbursals over traditional banking experiences.
Strong Ground Under RBI Oversight
Importantly, the fintech lending surge is supported by the RBI’s Digital Lending Regulations and a growing self-regulatory framework. These measures ensure customer protection, ethical practices, and systemic stability — all essential for long-term fintech growth.
This policy backing is crucial as fintechs continue expanding across age groups and regions. With clear guardrails in place, the sector can focus on innovation without compromising on compliance or transparency.
Financial Inclusion Gets a Boost
Young people in rural and semi-urban areas are now able to access credit digitally, which was difficult a few years ago. This shift is a key driver of inclusive and resilient economic growth, as more Indians gain control over their financial futures.
Because of this, fintechs are not just lending money — they are empowering new segments of the population. From education and health to emergencies and business needs, these loans play a vital role in everyday life.
Looking Ahead: Fintech Lending’s Bright Future
Going forward, fintech lending is set to grow stronger with customer-centric innovation, regional expansion, and greater personalisation. The FACE report paints a clear picture — India’s fintech future is young, digital, and inclusive.
If the trends continue, we may soon see fintechs contributing even more to India’s personal loan market, not just in volume, but value too. With the under-35 demographic driving demand, the digital lending landscape will remain a space to watch.
