Financial Services
Praxis Global Alliance Forecasts Tier 2 and Tier 3 Cities Driving 79% of FinTech-Led Loan Disbursements
14 Jan 2026

Praxis Global Alliance Forecasts Tier 2 and Tier 3 Cities Driving 79% of FinTech-Led Loan Disbursements 

Mumbai, January 14, 2026 – Praxis Global Alliance, a next-generation management consulting firm, unveiled its latest industry report, Lending Tech: The Paradigm Challengers, at the Ambit NextGen Summit. The report highlights a sector undergoing rapid transformation as credit demand moves beyond metros to emerging households in Bharat. 

The launch was attended by FinTech founders, NBFC leaders, and banking professionals exploring the future of co-lending, embedded finance, and impact-driven credit. 

Key Highlights: 

  • Tier 2 and Tier 3 cities account for nearly 79% of all FinTech-led loan disbursements. 

  • Co-lending models reduce NBFC funding costs from 9.5% to 8.5%. 

  • Healthcare financing AuM is growing at a 20% CAGR through embedded social impact credit. 

  • 50% of home loans are projected to be fully digital by 2027. 

  • Urban concentration remains high, with 86% of new mortgages originating from just 13% of districts. 

  • Tech-native lenders are enabling instant, digital-first access to emerging middle-income cohorts. 

 

This research outlines how the financial services industry is shifting toward digital-first, inclusive credit ecosystems. With credit now acting as an embedded layer in daily life, lenders are evolving from static financial institutions to agile platforms driven by data, co-lending partnerships, and real-time risk intelligence. 

Commenting on the report launch, Madhur Singhal, Managing Partner and CEO, Praxis Global Alliance, said, "The next credit cycle is being driven by Bharat. We are seeing a fundamental shift where lending is moving beyond money to become a tool for measurable social impact. From co-lending capital engines to digital-first home loans, technology is unlocking unprecedented opportunities for inclusion. We hope this research helps leaders navigate this dynamic and purpose-led financial landscape." 

About Praxis: Praxis Global Alliance is the next-gen management consulting firm revolutionizing how consulting projects are delivered. It delivers practical solutions to the toughest business problems by uniquely combining domain practitioner expertise, AI-led research approaches, and digital technologies. The company operates three business units, including Praxis Global Alliance Financial Investor Group (FIG), Praxis Global Alliance Business Enablement and Transformation (BET), and PraxDigital™. With a presence across 6 locations, it has a dedicated team of 200+ consultants and data scientists. For more details, please visit: https://www.praxisga.com/ 

For further information, contact: 
Shivam Bajaj 
Associate Manager – PR & Events 
shivam.bajaj@praxisga.com | +91 8700284180 

 

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