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India's Digital Lending Boom Driven by Small Ticket Personal Loans
Digital lenders in India gave out many personal loans during April to June 2026.
They approved 3.4 crore loans worth ₹64,656 crore.
The average loan was ₹18,802.
Many loans were small, with more than a quarter below ₹25,000.
However, larger loans made up about 60% of the total money approved.
Younger people received much of the approved money, and many borrowers lived in smaller cities.
The total amount of unpaid digital loans grew to ₹1.54 lakh crore by June 2026.
The report said loan repayment quality improved, with fewer accounts seriously overdue than in March 2023.
Overall, digital lending is growing through many small loans while average loan sizes gradually increase.
Digital NBFCs sanctioned 3.4 crore personal loans worth ₹64,656 crore in Q1 FY26-27.
The average digital personal loan ticket size rose to ₹18,802.
Loans below ₹25,000 represented 27% of sanction value, while ₹25,000–₹50,000 loans contributed 12%.
Sanction value grew 50% year-on-year, outpacing the 14% increase in loan volume.
Outstanding digital personal loans reached ₹1.54 lakh crore in June 2026, with 90-plus DPD at 1.4%.
- Who
- Digital non-banking financial companies and their personal-loan borrowers in India.
- What
- Digital lenders sanctioned 3.4 crore personal loans worth ₹64,656 crore, with an average ticket size of ₹18,802.
- Where
- Across India, including Tier III cities and beyond.
- When
- During Q1 FY26-27, covering April–June 2026; portfolio data was reported for June 2026.
- Why
- Demand for small-value, short-term credit is driving digital lending, while borrowing is gradually shifting toward larger loans.
Key facts
- Loans sanctioned
- 3.4 crore digital personal loans in Q1 FY26-27
- Sanction value
- ₹64,656 crore
- Average ticket size
- ₹18,802
- Small-loan share
- Loans below ₹25,000 accounted for 27% of sanction value
- Outstanding portfolio
- ₹1.54 lakh crore across 5.6 crore accounts in June 2026
- Portfolio growth
- 28% year-on-year growth in outstanding value
- 90-plus DPD
- 1.4% in June 2026, compared with 3.3% in March 2023
Sources
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