Fintechs Squeeze Personal Loan Portfolios Amid Rising Risks

A report by Fintech Association for Consumer Empowerment highlights a 10% drop in personal loans held by fintechs in Q2. It reveals a loan outstanding decrease to Rs 66,683 crore and a rise in unpaid loans exceeding 90 days. The data covers 71 fintech NBFCs.

A recent report from the Fintech Association for Consumer Empowerment indicates a significant 10% decline in the personal loan holdings of fintech companies for the quarter ending in September.

The decline brought the total outstanding loans to Rs 66,683 crore from Rs 74,057 crore in June, amidst growing concerns and regulatory actions against lending in this sector.

The SRO's analysis covers 71 fintech NBFCs and notes that the portion of unpaid loans over 90 days increased from 3.2% to 3.4%, showcasing heightened stress, particularly in West Bengal, Uttar Pradesh, Rajasthan, and Gujarat.

(With inputs from agencies.)