In the first half of fiscal 2026, digital lenders in India demonstrated continued robust momentum, with unsecured personal-loan volumes and disbursements growing strongly. According to the latest data from the Fintech Association for Consumer Empowerment (FACE), digital personal-loans disbursements reached approximately ₹97,381 crore, underlining the major role that technology-based lending platforms now play in fulfilling consumer credit needs.
Key Highlights
- Digital lenders disbursed ₹97,381 crore in H1 FY26, driven mainly by fast-growing small-ticket loans.
- Young, first-time borrowers boosted demand as digital NBFCs expanded reach using analytics and seamless onboarding tools.
The growth was largely driven by small-ticket loans, especially to young professionals and first-time borrowers. About 80 percent of the loans were of ticket-size below ₹25,000, showcasing digital lenders’ increased penetration into underserved borrower segments. The trend also suggests a shift in the personal-loan landscape: from traditional branch-based lending to fast, app-based credit for new and digitally-engaged consumers.
Further, these developments reflect deeper structural shifts in India’s credit market—digital NBFCs are leveraging data analytics, alternative credit scoring, and streamlined onboarding to expand reach across geographies and borrower categories. One recent fintech report noted that digital NBFCs accounted for nearly 90 percent of all personal-loan originations by volume in Q1 FY26, especially in the sub-₹1 lakh segment. Although the overall economy is cautiously navigating inflationary and macro-risk headwinds, the digital-personal-loan segment has so far held up, signalling investor and lender confidence in this channel.
Nevertheless, some caution remains: while growth rates are healthy, concerns around asset-quality in unsecured portfolios and regulatory oversight continue to draw attention. For now, however, the data suggests that the digital-personal-loan market is on a positive trajectory and may continue to expand its footprint into new borrower segments, smaller towns and previously underserved customers.
