Small-business lenders saw growth slow in fiscal 2026 as firms tightened credit amid market headwinds. Indifi’s loan book stayed flat, while NeoGrowth and Lendingkart saw assets fall. Lenders prioritised asset quality and cost discipline to manage stress among borrowers. Only a few firms grew by using models beyond pure balance-sheet lending.
Indifi's revenue and loan book remained broadly flat, NeoGrowth's assets under management (AUM) declined 21.5%, and Lendingkart's fell 74%. FlexiLoans' lending entity Epimoney grew its AUM only 10% in the first nine months of the year. WeRize and Progcap bucked the trend, helped by business models that extend beyond pure balance-sheet lending.
Fintech lenders focused on small business loans saw growth moderate in fiscal 2026, as they slowed disbursements and prioritised asset quality and cost discipline amid a challenging credit environment.The slowdown was mainly driven by stress among certain borrower segments, particularly those with high leverage, prompting lenders to tighten underwriting. Geopolitical uncertainty arising out of the West Asia conflict also weighed on lenders' risk