FatakPay launches FatakUdaan for tier 2–3 cities in India

By Vriti Gothi

Digital lending startup FatakPay has launched FatakUdaan, a credit-building product aimed at helping credit-underserved individuals in India establish and improve their credit profiles. The offering is targeted at first-time borrowers, gig workers, and blue-collar workers in Tier 2 and Tier 3 cities who have limited or no credit history.

The launch comes as India continues to grapple with a large population outside the formal credit system. Industry estimates suggest that more than 450 million Indians lack adequate access to regulated credit, limiting their ability to access loans, insurance, and other financial services. FatakPay’s latest product seeks to address this structural gap by focusing on early-stage credit awareness and disciplined borrowing behaviour.

FatakUdaan provides users with access to their credit bureau report, along with a detailed analysis explaining their current credit score and the factors that affect it. The platform then guides users through actionable steps to address outstanding liabilities, correct historical issues where possible, and adopt more sustainable credit practices over time.

A core component of the product is access to a secured credit card issued through FatakPay’s banking partners. Users can activate the card by placing a small fixed deposit, which determines their credit limit. According to the company, the low deposit requirement is intended to broaden participation while encouraging regular usage and timely repayments. For select eligible users, the programme may also offer a short-term micro personal loan, repayable within three months, with repayment behaviour reported to credit bureaus.

“Approximately 451 million Indians have limited or no access to formal credit, restricting their financial opportunities,” said Abhishek Gandhi, Co-Founder of FatakPay. “FatakUdaan is designed to help individuals take their first step toward building a credit history, improving low scores, and unlocking access to formal financial products.”

The company positions FatakUdaan as a longer-term engagement rather than a transactional lending product. “FatakUdaan focuses on a behaviour-led, habit-forming approach to credit building rather than a one-time transaction,” said Gaurav Keskar, VP Marketing at FatakPay. “By enabling small, structured actions such as timely repayments, we help users build confidence and long-term financial stability.”

The launch reflects a broader trend in India’s digital lending sector, where FinTechs are increasingly shifting from pure credit disbursal toward credit enablement and education. As regulatory scrutiny intensifies and lenders look to expand responsibly beyond metro markets, products that help consumers move from being credit-invisible to credit-ready are gaining strategic importance.