Digital non-banking finance companies are transforming credit access in India. A new report reveals they sanctioned nearly 10 crore personal loans in just nine months of this fiscal year. This massive volume represents a significant shift in how consumers obtain formal credit.
The data comes from the Fintech Association for Consumer Empowerment. Their report covers the first three quarters of the financial year 2025-26. The sheer scale of activity underscores the rapid growth of digital lending platforms.
These 9.9 crore sanctioned loans disbursed a staggering Rs 1,53,260 crore. In terms of volume, digital personal loans made up 78 percent of all personal loans sanctioned. However, their share of the total sanction value was 19 percent.
This indicates the typical loan size remains relatively small. The average sanctioned ticket size rose to Rs 15,493. This marks an increase of about 18 percent over the previous fiscal year.
Growth is accelerating. The sanction value grew by 53 percent year-on-year in the third quarter. This surge was largely driven by those higher ticket sizes, signaling a market adjustment.
Yet, the average loan amount is still minuscule compared to traditional lenders. For standard NBFCs, the average ticket size is around Rs 1 lakh. For banks, it is approximately Rs 5 lakh.
Sugandh Saxena, CEO of FACE, commented on the trends. She said the digital personal loan market continues its steady march. It is establishing its importance for financial inclusion and resilient growth.
The market is constantly calibrating strategies to sustain growth and improve quality. The report is based on data from credit bureau CRIF High Mark. It covers more than 110 digital NBFCs operating in the space.
Outstanding portfolios are also swelling. As of December 2025, they stood at 6.47 crore accounts. The total value was Rs 1.39 lakh crore.
This represents a massive increase of around 53 percent from March 2024. Importantly, portfolio quality is improving alongside this expansion.
Assets with Days Past Due over 90 fell to 1.9 percent in December 2025. This is a notable drop from 3.3 percent in March 2023. It suggests lenders are managing risk more effectively.
Credit distribution follows familiar fintech patterns. About 60 percent of the sanctioned value went to borrowers under 35 years old. This highlights the youth-driven nature of digital finance.
Furthermore, 18 percent of the value went to women borrowers. A significant 39 percent reached customers in tier 3 cities and beyond. This trend shows the sustained expansion of formal credit into underserved segments.
Digital NBFCs are clearly deepening financial inclusion. They are reaching young, female, and geographically dispersed borrowers. The data paints a picture of a dynamic and growing market that is filling a crucial gap in the credit ecosystem.