Fino Payments Bank is witnessing strong momentum in its referral lending business through its merchant-led distribution channel, with disbursements reaching ₹540 crore as of March 20, 2026.
The bank expects to close the current quarter at nearly 90% of the cumulative disbursements recorded in the first three quarters (₹700 crore), putting it on track to achieve close to ₹1,300 crore in referral loan disbursements for FY26.
Rural demand drives growth
The sharp acceleration reflects rising demand for credit in rural and semi-urban markets, supported by the bank’s extensive merchant network and deepening partnerships with non-banking financial companies (NBFCs).
Fino Payments Bank has been strengthening its credit distribution capabilities as part of its long-term strategy to transition into a Small Finance Bank (SFB).
Partnership-led credit model
The bank has partnered with leading NBFCs to act as a sourcing partner, particularly in underserved markets, enabling wider access to formal credit.
Its current pilot portfolio includes secured lending products such as home loans, gold loans and loans against property, along with business loans for merchants.
“We are seeing strong demand for secured credit products across our network, especially in rural and semi-urban markets. Our referral lending model enables us to leverage our distribution strength while building a deeper understanding of customer credit needs. This further reinforces the trust our customers place in us and is an important step in our journey towards becoming a diversified and differentiated Small Finance Bank in the near future with an impetus on an asset-light business model,” Fino Payments Bank, Interim Chief Executive Officer, Ketan Merchant.
Merchant network as growth engine
The bank’s merchant network continues to play a critical role in driving adoption of credit products, leveraging strong local connect and customer trust.
“Our merchant network continues to be a strong growth engine for the bank. The network’s deep local connect and customer trust are helping us to drive strong adoption of credit products, especially in underserved markets,” Fino Payments Bank, National Head (Channel Sales), Darpan Anand.
Building future credit capabilities
Fino’s rural footprint includes over 20 lakh merchant points and 1.7 crore CASA customers, providing last-mile access to formal financial services.
These pilot initiatives are also helping the bank build credit assessment capabilities, train its network on loan origination and understand customer repayment behaviour, forming the foundation for future credit expansion aligned with its long-term strategy.