The Fintech Barometer Vol II, published by CRIF High Mark and the Digital Lenders Association of India (DLAI), highlights a 44% increase in defaults among personal loan borrowers for loans disbursed between December 2023 and June 2024. The trend is particularly pronounced in small-ticket loans, below ₹10,000, which show higher default rates compared to larger loans.
NBFCs (Non-Banking Financial Companies) dominate this segment, expanding their market share and promoting financial inclusion in smaller urban and rural areas. Cities beyond the top 100—those not included among the largest or most economically significant urban centers—account for over 40% of the value and volume of new disbursements. This highlights the growing role of less-developed regions as emerging markets for digital credit.
