Digital personal loan book tops Rs 1.39 lakh crore; sanctions jump 53%

Mumbai: Digital personal loans continue to cement their place in India's credit ecosystem, with sanction value growing 53% year-on-year in Q3 FY25-26, according to a report released by the Fintech Association for Consumer Empowerment (FACE), the RBI-recognised Self-Regulatory Organisation for the FinTech sector.

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In Q1-Q3 FY25-26, digital NBFCs sanctioned 9.9 crore personal loans worth Rs 1.53 lakh crore, accounting for 78% of total personal loan volumes and 19% of total sanction value. Outstanding digital personal loan portfolios stood at 6.47 crore accounts totalling Rs 1.39 lakh crore as of December 2025, a growth of approximately 53% from March 2024.


The average sanctioned ticket size rose to Rs 15,493, an 18% increase over FY24-25, driven largely by higher ticket sizes. However, the figure remains significantly smaller than the average ticket sizes of NBFCs and banks, which stand at approximately Rs 1 lakh and Rs 5 lakh respectively.

Asset quality has shown a consistent improvement. The 90-day past due (DPD 90+) ratio fell to 1.9% in December 2025, down sharply from 3.3% in March 2023, reflecting better underwriting discipline across digital lenders.

The report is based on data sourced from credit bureau CRIF High Mark, analyses lending trends across 110+ digital non-banking financial companies (NBFCs) from April 2022 to December 2025.

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Credit distribution reflects the sector's financial inclusion mandate. Over 60% of sanctioned value went to borrowers under 35 years of age, while 39% was disbursed to customers from Tier III cities and beyond.

Women borrowers accounted for 18% of sanctions in Q1-Q3 FY25-26, a figure that continues to improve gradually. More than half (56%) of sanction value came from customers with ticket sizes above Rs 50,000, a bureau vintage of five years or more, and mid-to-low credit risk profiles, indicating the sector is steadily moving up the credit quality chain.