frenzofinserv

  India's banking sector has brought its gross NPA ratio down to 2.1% as of September 2025, the lowest in over a decade, according to the Reserve Bank of India's Trend and Progress of Banking report. That number reflects real progress: better underwriting, the Insolvency and Bankruptcy Code, and sustained regulatory pressure on asset quality. But underneath the headline, a different story is playing out. The stress has moved downstream. NBFCs in the microfinance sector saw their stressed asset ratio rise to 5.9% in March 2025, nearly doubling from 3.9% just six months earlier. Write-offs among upper-layer NBFCs surged to 72.9% in the same period. Small-ticket personal loans below Rs 50,000, the backbone of fintech lending, are showing persistently elevated delinquency. And unsecured lending by NBFCs had been growing at 28.1% as of March 2023, more than double the 11.5% growth rate of secured loans. The collections problem in India is not going away. It is shifting to the part o...

  At some point, every growing NBFC faces this decision: should we build our own debt collection platform , or should we buy one? The question usually comes up when PAR starts rising and the existing setup (CRM, basic dialer, spreadsheet tracking) can no longer keep up with portfolio growth. Someone on the leadership team suggests building a proper collections technology stack. Someone else argues for buying a ready-made solution. Both sides have legitimate points. But the decision is often made without a full picture of what each path actually costs. This article is an attempt to lay out that picture with real numbers, drawing on what is publicly known about collections technology costs in India and FrenzoFinserv's experience deploying its CaaS platform across NBFC and fintech portfolios. What "building" actually means Building a debt collection platform in-house is not a single project. It is several projects running in parallel, and each one has its own cost, timeline,...