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.