Digital NBFCs Approve Nearly 10 Crore Personal Loans in 9 Months: Insights from Recent Report
Synopsis
Discover how digital non-banking finance companies are reshaping personal loan access in India, with almost 10 crore loans sanctioned in just nine months—empowering younger borrowers and enhancing financial inclusion.
Key Takeaways
10 crore personal loans sanctioned by digital NBFCs in FY26.
Rs 1.53 lakh crore disbursed in total.
Average loan size increased by 18 percent .
Outstanding digital loan portfolios reached 6.47 crore accounts .
Improved asset quality with 1.9 percent overdue loans.
New Delhi, March 24 (NationPress) Digital non-banking finance companies (NBFCs) have enhanced access to formal credit by approving approximately 10 crore personal loans totaling Rs 1.53 lakh crore in the initial nine months of FY26, which accounts for 78 percent of all personal loans, according to a recent report.
The analysis from the Fintech Association for Consumer Empowerment (FACE) indicates that 9.9 crore digital personal loans were granted during this timeframe, disbursing a total of Rs 1,53,260 crore.
In terms of volume, digital personal loans represented 78 percent, while they constituted 19 percent of the total sanction value of personal loans.
The average amount sanctioned rose to Rs 15,493, reflecting a growth of approximately 18 percent compared to FY25.
Moreover, the sanction value surged by 53 percent year-on-year in Q3 FY25-26, primarily driven by increased ticket sizes, indicating a market adjustment. Nonetheless, this average ticket size is significantly lower than the average sizes offered by NBFCs and banks, which stand at around Rs 1 lakh and Rs 5 lakh, respectively.
“The market for digital personal loans is steadily progressing, underscoring its critical role in financial inclusion and fostering sustainable growth. The trends indicate broader market access as it continually refines strategies to maintain growth and enhance portfolio quality,” stated Sugandh Saxena, CEO of FACE.
According to data from credit bureau CRIF High Mark, encompassing more than 110 digital NBFCs, the outstanding portfolios of digital personal loans reached 6.47 crore accounts totaling Rs 1.39 lakh crore as of December 2025, marking an approximate 53 percent increase since March 2024.
Additionally, the quality of these portfolios has improved, with assets classified as Days Past Due (DPD) over 90 days decreasing to 1.9 percent in December 2025 from 3.3 percent in March 2023.
Credit distribution trends remain consistent within the FinTech sector, with 60 percent of the sanctioned value directed to borrowers under the age of 35, 18 percent to women, and 39 percent to clients from tier 3 cities and beyond, highlighting a sustained expansion of formal credit access to younger and underserved demographics.
Point of View
We recognize the significant role digital NBFCs play in enhancing financial inclusion in India. The growth in personal loans reflects a broader trend towards accessibility and better credit distribution, particularly among younger and underserved populations. This development is crucial for fostering economic resilience and growth.
NationPress
10 May 2026
Frequently Asked Questions
What percentage of personal loans were sanctioned by digital NBFCs?
Digital NBFCs sanctioned approximately 78 percent of all personal loans during the first three quarters of FY26.
How much did the average loan amount increase in FY26?
The average sanctioned loan amount rose to Rs 15,493, an increase of about 18 percent over FY25.
What demographic primarily benefits from digital personal loans?
Approximately 60 percent of sanctioned loans are directed to borrowers under the age of 35.
How has the quality of loan portfolios changed?
The portfolio quality improved, with assets overdue by more than 90 days reducing to 1.9 percent as of December 2025.
Which organization provided the report on digital NBFCs?
The report was released by the Fintech Association for Consumer Empowerment (FACE).
