Personal loan defaults up in fintech firms: RBI
The Reserve Bank of India's Financial Stability Report indicates that personal loan defaults in fintech firms have risen to 6.4% as of March 2026. Fintechs now dominate the small-ticket loan market, raising concerns about asset quality and the financial health of non-banking finance companies.
Why it matters
The rapid growth of unsecured lending via fintech apps poses systemic risks to the financial sector, particularly among younger borrowers.
Fintech firms’ small ticket personal loan defaults rose to 6.4% in March from a little over 4% in March 2024 signalling potential asset quality risks, according to Reserve Bank of India’s Financial Stability Report (FSR) June 2026.
The article relies on official RBI data and reports on market trends without subjective bias.
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