In the first half of fiscal 2026, the total number of sanctioned personal loans stood at 8 crore, amounting to ₹5.13 lakh crore. Of which, digital NBFCs sanctioned 6.4 crore loans amounting to ₹ 97,381 crore, with an average ticket size of ₹ 15,177.
These findings were drawn by a report of the Fintech Association for Consumer Empowerment (FACE) which observes the trends for digital lending by analysing the personal loans of over 110 digital NBFCs from April 2022 to September 2025.
The report groups the Digital NBFCs as NBFCs primarily offering digital personal loans through their own/in-house digital lending apps (DLAs) or in partnership with DLAs of LSPs.
These digital loans mentioned above accounted for 19% of the sanction value and 80% of the sanction volume, the report further notes.
Digital loans
Digital loans are consistently increasing their share in the personal loan market, the report notes.
In H1 FY 25-26, digital loans accounted for 19% of the sanction value and 80% of the sanction volume, focusing on sizeable underserved segments that need small-value loans. Similarly, in loans outstanding, the share of Digital NBFCs is just 8% of the total value of personal loans outstanding as of Jun 25, but accounts for 49% of active loans.
Age bracket
Digital loan customers are younger, with over 60% coming from the age bracket under 35 years. 41% of loans are to customers who have a bureau vintage of < 5 years, and 60% to customers having a mid-low risk profile.
The composition of gender and location for personal loans by digital NBFCs is not too different.
The growth rate of the sanction volume is moderating over time. In Q2 FY 2025-26, the sanction volume increased by 12% from Q1 FY 2025-26, and by 6% from Q2 FY 24-25.
The share of customers from rural areas is increasing marginally, though they are less likely to reside there. The report notes that the mapping of rural/urban is based on the 2011 census and is not truly reflective of the current reality of urbanisation. Additionally, many new urban migrants submit permanent home addresses in rural areas.