Fintech Loans Growing Fast: Is Your EMI Deal Fair?

India's digital lending NBFCs grew their loan books by over 21% in a year, and they're now offering bigger loans. More competition means more options for you — but also more risk if you don't compare carefully.

Here's what happened: India's NBFC fintech lenders grew their total loan portfolio by 21.2% year-on-year as of June 2026, driven by rising credit demand among salaried and self-employed borrowers.. Lenders are shifting focus from small-ticket loans under ₹50,000 to larger personal loans of ₹2 lakh and above, targeting a more creditworthy middle-class segment.. Greater competition among digital lenders is pushing them to offer faster disbursals, flexible tenures, and pre-approved loan products — often within hours of application..

What you should do: Compare at least 3 fintech NBFC offers alongside your bank before accepting any personal loan — processing fees and foreclosure charges can add thousands to your real cost.. Check the Annual Percentage Rate (APR), not just the interest rate quoted — APR includes all fees and gives you the true cost of borrowing.. Review your CIBIL score before applying: a score above 750 puts you in the best rate bracket at most fintech lenders, potentially saving ₹500-₹1,000 per month on a ₹5 lakh loan..

If a fintech lender offers you a pre-approved loan unsolicited, use it as a negotiating chip with your bank — banks often match or beat the offer to retain you as a customer.