Archive · 2 Oct 2026
Digital NBFCs Outpace Banks in Volume, Not Loan Value
Digital lending apps are becoming a popular way for people in India to borrow personal loans.
In April to June 2026, digital NBFCs approved 3.4 crore loans worth ₹64,656 crore.
They approved most of the loans by number, but the loans were usually small.
The average digital loan was ₹18,802, while the average bank loan was ₹4.52 lakh.
Younger people received much of the money lent through digital NBFCs.
People living in smaller cities also received a significant share.
Banks still provided the largest share of the total loan value.
The report says digital lenders are helping more people access formal credit, but lending should remain transparent and responsible.
Digital NBFCs sanctioned 3.4 crore personal loans worth ₹64,656 crore in Q1 FY27.
They accounted for 70% of personal-loan sanction volume but only 22% of sanction value.
The average digital-NBFC loan was ₹18,802, compared with ₹70,025 for other NBFCs and ₹4.52 lakh for banks.
Borrowers under 35 received 58% of digital-loan sanction value, while customers in Tier III cities and beyond received about 40%.
Digital NBFCs’ share of sanction value rose from 12% in FY22 to 22% in Q1 FY27, while banks’ share fell from 72% to 52%.
- Who
- Digital NBFCs, banks, other NBFCs, and Indian personal-loan borrowers; the data was reported by the Fintech Association for Consumer Empowerment using CRIF High Mark data.
- What
- Digital NBFCs are gaining share in India’s personal-loan market, particularly through smaller loans to younger borrowers and customers in smaller cities.
- When
- The report covers April 2022 to June 2026, with key figures for Q1 FY27, from April through June 2026.
- Where
- India, including Tier III cities and beyond.
- Why
- Digital NBFCs primarily serve borrowers seeking smaller-value loans, including credit for shorter periods, while banks continue to provide larger-value personal loans.
- Report
- Digital Personal Loans
- Publisher
- Fintech Association for Consumer Empowerment, an RBI-recognised Self-Regulatory Organisation for the FinTech sector
- Data source
- CRIF High Mark data covering more than 110 digital NBFCs
- Overall market in Q1 FY27
- About 4.9 crore personal loans worth ₹2.99 lakh crore
- Digital NBFC performance
- 3.4 crore loans worth ₹64,656 crore
- Average ticket size
- ₹18,802 for digital NBFCs; ₹70,025 for other NBFCs; ₹4.52 lakh for banks
- Borrower profile
- 58% of digital sanction value went to borrowers below 35, 82% to male borrowers, and about 40% to customers in Tier III cities and beyond
