The report, based on CRIF High Mark data, tracks personal loans originated by more than 110 digital NBFCs between April 2022 and June 2026 and compares digital lending with the broader personal loan market across NBFCs and banks.
Digital NBFCs accounted for 70% of total personal loan sanction volumes and 22% of sanction value in Q1 FY27.
The average loan size rose to ₹18,802, about 15% higher than in FY26, pointing to a gradual shift towards larger-ticket borrowing.
Loan volumes continue to grow
Personal loan sanctions by digital NBFCs increased 14% year-on-year in the June quarter, although growth slowed to 2% from the previous quarter.
Around 60% of total sanction value came from loans above ₹50,000, borrowers with at least five years of credit history and customers in the mid- to low-risk categories.
Despite the increase, digital personal loans remain much smaller on average than those issued by traditional lenders.
The average ticket size was ₹70,025 for other NBFCs and ₹4,52,212 for banks, compared with ₹18,802 for digital NBFCs.
As of June 2026, the outstanding digital personal loan portfolio stood at 5.6 crore accounts worth ₹1.54 lakh crore, up around 28% in value from June 2025.
Portfolio quality remains stable
The expansion in digital lending has so far been accompanied by stable portfolio quality.
Loans with more than 90 days past due accounted for 1.4% of the outstanding digital personal loan portfolio as of June 2026.
The customer base also remains relatively young. Borrowers below 35 years accounted for around 58% of sanction value, while 40% of sanction value went to customers in Tier III cities and beyond.
Women accounted for 18% of sanction value, broadly in line with other lenders.
The report said digital personal lending has emerged as a distinct segment of India’s retail credit market, with digital NBFCs serving borrowers across different age groups, locations and borrowing needs.
Sugandh Saxena, CEO of FACE, said the growth of digital NBFCs in unsecured credit highlights their role in expanding access to formal credit, while stressing the need for transparency, responsible lending practices and responsible credit behaviour.
The latest data shows that digital personal lending is growing both in scale and average loan size, while the share of loans overdue by more than 90 days remains at 1.4%.
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