Yubi’s Report Reveals 79% of Loans Now Reach Tier 2/3 Cities as Partnership Lending Booms

Executive Summary

• Co-lending boomed with a 3x growth in agreements since 2021 catalyzed by RBI’s evolving frameworks.

• SME Lending rose by almost 100% YoY, indicating a strong push towards supporting the community with accessible credit.

• The age distribution of borrowers highlights a strong preference among younger demographics, with the 25-30 years age group leading at 40%.

Yubi, the world’s only tech company powering the entire debt lifecycle, today released its Annual Partnership Lending Report for FY 24-25, offering a deep dive into the evolving landscape of co-lending, securitization, and 100-0 partnership lending models in India’s financial sector. The report draws insights from over Rs. 22,600 crore in loan disbursements and over 2 crore transactions facilitated through the Yubi platform, across 300+ live partnerships.

Key findings:

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.

• Securitization volumes remained steady, with Rs. 46,904 Cr in Direct Assignment (DA) and Rs. 5,335 Cr in Pass-Through Certificates (PTC) assets under management.

• In FY 25, Karnataka was the state with the highest value of disbursements in India.

• States like Bihar, West Bengal, Andhra Pradesh & Rajasthan which are traditionally underserved / unserved 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. “The outcomes are measurable: SME lending nearly doubled, commercial vehicle financing tripled, and housing loans emerged as a new segment. While unsecured consumer lending recalibrates post-regulatory changes, secured asset classes now dominate as banks prioritize productive credit. With Rs. 22,600 Cr+ disbursed last fiscal and approval times slashed to 2 hours, these models are no longer alternatives – they’re redefining how credit fuels India’s real economy.”

“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.

Access the full report here – www.go-yubi.com/ebook/yubi-partnership-lending-report-fy-24-25/.

About Yubi

The Yubi Group is the world’s only technology company powering the end-to-end debt lifecycle. Founded in 2020 by CEO, Gaurav Kumar, Yubi’s technology infrastructure, risk evaluation, and collections platforms facilitate every stage of the flow of money from lenders to borrowers and back to lenders. The company is backed by esteemed investors like Peak XV, Lightspeed, Lightrock, TVS Capital, B Capital Group, Dragoneer Investment Group, and Insight Partners, among others. Today, Yubi facilitates over Rs. 1,40,000 Cr in debt volumes, serving 17,000+ enterprises and 6,200+ investors & lenders while reducing collections costs by 57%. With a mission to deepen the debt market and democratize capital flow, Yubi is transforming the financial landscape, fostering inclusivity, and building a transparent and responsible ecosystem for all.

For more information, visit www.go-yubi.com.