Fintech NBFCs Booming: Is Your Loan Rate Fair?

Fintech lender InCred Finance saw profits jump 82% as more Indians borrow from NBFCs. Before you take a loan from any fintech lender, here is what you must check to avoid paying too much.

Here's what happened: InCred Finance, an IPO-bound fintech NBFC, reported ₹172 crore net profit in Q1 FY27, up 82% year-on-year from ₹94 crore.. The surge was driven by higher loan disbursements, better operating efficiency, and improving asset quality across its lending portfolio.. Fintech NBFCs like InCred are growing rapidly, filling credit gaps left by traditional banks — especially for personal, education, and SME loans..

What you should do: Compare the APR (Annual Percentage Rate), not just the interest rate, across banks and fintech NBFCs before signing any loan agreement.. Check that any NBFC you borrow from is listed on the RBI's official website as a registered NBFC — never borrow from unlisted apps.. Review your CIBIL score before applying — a score above 750 gives you leverage to negotiate better rates even with fintech lenders..

Fintech NBFCs often approve loans faster than banks but charge 2–6% higher interest annually. Use bank rejection as leverage — get a bank pre-approval first, then use it to negotiate with NBFCs.