India's digital personal loan portfolio held by non-banking finance companies (NBFCs) reached ₹1.54 lakh crore as of June 2026, marking a year-on-year rise of approximately 28 per cent in value compared to June 2025, according to a report released on Wednesday, 30 September 2026 by FACE, the Reserve Bank of India (RBI)-recognised Self-Regulatory Organisation in the FinTech Sector (SRO-FT). The data signals a sustained expansion in formal digital credit, with improving portfolio quality adding to the sector's credibility.

Loan Volumes and Quarterly Trends

Digital NBFCs sanctioned approximately 3.4 crore personal loans worth ₹64,656 crore during the April–June 2026 quarter. These loans accounted for 70 per cent of total personal loan sanction volume and 22 per cent of total sanction value across the sector. Sanction volume rose 14 per cent year-on-year over the same quarter of FY 2025-26 and climbed 2 per cent over the previous quarter, indicating steady sequential momentum.

Bigger Tickets, Younger Borrowers, Smaller Cities

The average ticket size climbed to ₹18,802, roughly 15 per cent higher than the FY 2025-26 average, reflecting a shift toward larger, more mature credit products. Notably, 58 per cent of sanction value was extended to customers under 35 years of age, underlining the sector's strong appeal among younger borrowers. Geographic diversification also deepened, with 40 per cent of sanction value flowing to Tier III cities and beyond — a sign that digital credit is penetrating markets that traditional banking has historically underserved.

Portfolio Quality and Risk Profile

Asset quality metrics showed improvement, with the Days Past Due (DPD) of 90 days or more standing at just 1.4 per cent in June 2026 — a level the report describes as healthy. Approximately 60 per cent of sanction value came from loans above ₹50,000, extended to borrowers with a bureau vintage of five years or more and a mid-to-low risk profile. This suggests lenders are deliberately moving up the credit quality curve even as they scale volumes.

Women's Participation and the Inclusion Gap

Women accounted for 18 per cent of total sanction value during the quarter, a figure the report flags as an indicator of the continued gap in women's access to formal credit. The FACE report noted that this gap points to significant room for financial products specifically designed around women's borrowing needs and repayment patterns — an area that both regulators and lenders have increasingly flagged as a priority.

What the Industry Said

Sugandh Saxena, CEO of FACE, said: 'Quality growth will sustain by keeping customer interest, transparency and responsible conduct at the centre and engaging with consumers for responsible credit behaviour.' The outstanding digital personal loan portfolio stood at 5.6 crore accounts worth ₹1.54 lakh crore as of June 2026. With the RBI maintaining close oversight through its SRO-FT framework, the sector's next phase of growth is expected to hinge on responsible lending standards and deeper customer education.