India`s digital NBFC personal loan book grows 28 pc as portfolio quality improves
India's digital personal loan book of non-banking finance companies (NBFCs) reached Rs 1.54 lakh crore as of June 2026, an increase of about 28 per cent in value from June 2025, a report said on Wednesday.
Digital NBFCs sanctioned about 3.4 crore personal loans worth Rs 64,656 crore in the April–June 2026 quarter, accounting for 70 per cent of sanction volume and 22 per cent of sanction value across personal loans, according to the report by FACE, the RBI-recognised Self-Regulatory Organisation in the FinTech Sector (SRO-FT).
Average ticket size rose to Rs 18,802, around 15 per cent higher than FY25-26 and 58 per cent of sanction value went to customers under 35 years, and 40 per cent to Tier III cities and beyond, it said.
Portfolio quality improved and remains healthy, with Days Past Due of 90 days or more standing at 1.4 per cent in June 2026. Women accounted for 18 per cent of sanction value, highlighting continued scope to expand women's participation in formal credit.
This points to a wider gap in women's participation in formal credit and room for products designed around their needs.
Volumes continue to grow and sanction volume rose 14 per cent over Q1 FY 25-26 and 2 per cent over the previous quarter.
The report further noted that loans are also getting bigger and moving up the credit chain. About 60 per cent of the sanction value came from loans above Rs 50,000, borrowers with a bureau vintage of five years or more, and customers with a mid-to-low risk profile.
The outstanding digital personal loan portfolio stood at 5.6 crore accounts worth Rs 1.54 lakh crore as of June 2026, up about 28 per cent in value on a year-on-year basis.
“Quality growth will sustain by keeping customer interest, transparency and responsible conduct at the centre and engaging with consumers for responsible credit behaviour,” said Sugandh Saxena, CEO of FACE.
