A survey released on Wednesday by the Fintech Association for Consumer Empowerment revealed that as of September 30, the proportion of fintechs in personal loan sanctions had increased to 62% of the total volume, up from 30% in March 2019.

According to the report, the proportion of fintechs in loan sanctions increased from 4% about five years ago to 10% of the total amount.

According to the report, fintechs' business strategies differ from traditional lenders in that they can effectively target the underbanked customer sector.

Fintechs' total volume of personal loans increased from 2.3 million in March 2019 to 41.5 million as of September 30. The amount of outstanding loans increased from Rs 9,913 crore to Rs 55,353 crore.

Fifty-nine percent of fintech customers are low- and medium-risk consumers. Approximately 49% of sanctioned loans have less than Rs 50,000.

The top five states continue to hold half of the outstanding loans, with the share of the top 10 states declining slightly from 80% to 77%.

Fintech personal loans become available to borrowers in tier-III cities and other places. In the first half of the current fiscal year, four out of every ten loans were issued to borrowers residing in such cities.

As of September 30, the percentage of tier III cities and higher actually increased from 25% in March 2019 to 45%. Sixty-seven percent of fintech borrowers are under 35.

According to FACE Chief Executive Sugandh Saxena, "evolving digital public infra, adaptive regulation, customer preference, fintech's will and ability to serve unmet credit needs create a conducive landscape for financial inclusion." He also mentioned that the fintechs have a lot of responsibilities and opportunities as a result of the growing economy and digitisation.