Around 79% of loans now reach tier 2 & 3 cities as partnership lending spikes: Report

Nearly 79% of loans have reached tier 2 and tier 3 cities thanks to lending partnership between lenders, says Yubi in its Annual Partnership Lending Report for FY 24-25.

The report draws insights from over ₹22,600 crore in loan disbursements and over 2 crore transactions facilitated through the Yubi platform, across 300 live partnerships. The report has brought to the fore some interesting insights with respect to lender preferences, speed of credit delivery as well as demographics of end beneficiaries.

These can act as a guiding light for all members of the ecosystem right from the regulator to participating banks & NBFCs as well as fintech companies operating in the partnership lending space.

AI and API-driven automation cut loan approval turnaround time (TAT) to just 2 hours, and disbursal to 18 hours on average. Securitisation volumes remained steady, with ₹46,904 crore in Direct Assignment (DA) and ₹5,335 crore in Pass-Through Certificates (PTC) assets under management. In FY 25, Karnataka was the state with the highest value of disbursements in India.

Top 10 states

States like Bihar, West Bengal, Andhra Pradesh & Rajasthan which are traditionally underserved / unserved in personal loans are part of the top ten states by value of disbursement. “India’s lending ecosystem is undergoing a collaborative revolution,” said Gaurav Kumar, Founder & CEO of Yubi Group.

“At Yubi, we’ve built the digital infrastructure to power this transformation, enabling hyper-scalable, compliant, and secure lending frameworks that break barriers to credit access. The results speak for themselves: 79% of loans disbursed through partnership models reach Tier 2 and Tier 3 borrowers, while underserved states like Bihar and West Bengal now rank among the top 10 for disbursements. This isn’t just growth; it’s democratization.” “Leveraging the interoperability feature of our platforms – whether DA, Co-Lending, or 100-0 digital partnerships, has enabled lenders and originators to scale partnerships efficiently," said Vipul Mahajan, Chief Business Officer, Yubi.

“At Bank of India, expanding access to credit for underserved and unserved segments has been central to our growth strategy. By embracing a technology led approach in co-lending and securitization, we’ve been able to scale our partnership lending operations swiftly and efficiently," echoed Ashok Kumar Pathak, Chief GM, Retail, Agri, MSME & Financial Inclusion, Bank of India. 

“The underlying technology and seamless integrations offered by Yubi have empowered us to collaborate with our partners better and jointly disburse loans with speed and precision. This has not only accelerated our portfolio growth but reinforced our commitment to financial inclusion - enabling credit to reach where it’s needed most,” he added.

As India’s financial institutions increasingly embrace collaborative lending models to drive inclusion and innovation, Yubi’s latest report reveals pivotal market shifts, regulatory changes, and technology-led breakthroughs powering this momentum. The Yubi Group is a tech company powering the end-to-end debt lifecycle. Yubi serves 17,000 enterprises and 6,200 investors & lenders.

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