Small-Business Loans in Gujarat Surge 69%: Experian Highlights Fintech’s Impact

• 59% market share captured by fintech lenders for loans under Rs 1 lakh.
• 69% increase in small-ticket business loans under Rs 10 lakh from FY’23 to FY’24.
• 49% of business loans sourced through fintechs, driving credit access for NTC individuals and small businesses.

BILKULONLINE

Ahmedabad, Dec 3:  Gujarat has experienced an impressive 69% growth in business loans under Rs 10 lakh, solidifying the state as a crucial player in India’s expanding small-ticket lending market, according to a new white paper by Experian India.

The report, titled “Small is BIG: How Fintechs are Revolutionizing Lending,” highlights Gujarat’s lending growth during FY’24 compared to FY’23, showcasing the state’s advancement in financial inclusion through fintech-driven solutions.

Gujarat’s fintech market share is substantial, with fintech lenders capturing 59% of the personal loan market for loans under Rs 1 lakh and 49% of the business loan market for loans under Rs 10 lakh. This growth in small-ticket loans is reshaping the lending landscape in Gujarat, providing essential financial access to New-to-Credit (NTC) individuals and small businesses.

The white paper reveals that fintech companies have facilitated over Rs 2,48,006 Crores of Personal Loan and Rs 28,607 Crores Business Loans as of March 2024 across the country. These loans, often under Rs 50,000, have primarily reached New-to-Credit (NTC) individuals, those with thin credit files, and sub-prime borrowers, many of whom were previously excluded from the formal financial system. 

Manish Jain, Country Managing Director at Experian India, said, “The fintech revolution in India is just beginning, and there’s enormous potential for growth. Fintech companies have already made a big impact by providing credit to those who need it most, but there’s still more to be done. The insights in this white paper highlight both the opportunities and challenges ahead.”