Digital NBFCs’ personal loan sanctions jump 25% to Rs 97,381 crore in H1 FY26: FACE
03 Dec 2025, 04:43 PMHowever, female participation in the digital personal loan market is rising at a snail's pace as it grew from just 16.7% of the total sanction value in H1 FY25 to 17.2% in H1 FY26.
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Personal loans sanctioned by digital non-banking financial companies (NBFCs) increased by around 25% to Rs 97,381 crore in H1 FY26 (April-September) from Rs 78,084 crore in the same period last year, according to the Fintech Association for Consumer Empowerment (FACE), an RBI-recognized self-regulatory organization in the fintech sector.
In terms of volume, the number of personal loans allocated by the digital NBFCs rose from 5.9 crore in H1 FY25 to 6.4 crore in H1 FY26, signaling stronger demand and improved underwriting quality.
Overall, the personal loan sanctioned by digital NBFCs, other NBFCs and banks was about 8 crore worth Rs 5.13 lakh crore during the first half of this fiscal. Of the total, digital loans accounted for 19% of the sanction value and 80% of the sanction volume.
The average sanctioned ticket size of the digital NBFCs rose to Rs 15,177 in H1 FY26, up from Rs 13,327 in the corresponding period last year, indicating a shift toward higher-value lending as borrowers build credit history and repayment performance continues to improve.
Outstanding digital personal loan portfolios reached Rs 1.28 lakh crore across 5.99 crore accounts as of September 2025, with portfolio quality improving to 2.1% for loans overdue by 90 days or more.
Credit distribution continues to widen significantly, with 60% of sanctioned value going to borrowers under 35 years of age, 17% to women borrowers, and 53% originating from tier-III cities and beyond, demonstrating sustained expansion of formal credit access into young and emerging segments.
However, female participation in the digital personal loan market is rising at a snail's pace as it grew from just 16.7% of the total sanction value in H1 FY25 to 17.2% in H1 FY26.
"The fintech lending ecosystem is operating in sync with the public policy objective of digital financial inclusion for inclusive growth and resilience," said Sugandh Saxena, CEO of FACE.
Saxena added that the country's digital lending market is scaling sustainably on the foundation of customer-protection, prudence, and risk management.
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