Digital Personal Loan Sanctions Rise 53% as Portfolio Reaches ₹1.39 Lakh Crore

Digital Personal Loan Portfolios reached ₹1.39 lakh crore as of December 2025, based on data compiled across more than 110 digital NBFCs, as per The Economic Times reports.  

The number of outstanding accounts stood at 6.47 crore. The portfolio has expanded by about 53% since March 2024, showing sustained growth in this segment over the past year. 

Sanction Trends During FY25-26 

Between April and December FY25-26, digital lenders sanctioned 9.9 crore personal loans amounting to ₹1.53 lakh crore. These accounted for 78% of total personal loan volumes and 19% of the total value sanctioned across lenders.  

In the December quarter, sanction value increased 53% year-on-year, indicating continued demand for small-ticket credit. 

Ticket Size and Lending Mix 

The average ticket size rose to ₹15,493 during the period, up 18% compared to the previous financial year.  

Despite the increase, digital loans remain smaller in size relative to traditional lending channels, where average ticket sizes are about ₹1 lakh for NBFCs and around ₹5 lakh for banks. 

Asset Quality Indicators 

Asset quality has shown improvement over the past 2 years. The 90-day past due (DPD 90+) ratio declined to 1.9% in December 2025, compared with 3.3% in March 2023.  

The trend shows tighter credit assessment and risk controls across digital lending platforms. 

Borrower Segments and Reach 

A large share of credit continues to flow to younger borrowers. Individuals below 35 years accounted for over 60% of the sanctioned value.  

Nearly 39% of loans were disbursed to borrowers in Tier III cities and beyond. Women accounted for 18% of total sanctions during the period. 

Shift in Credit Profile 

More than half of the sanctioned value, about 56%, was extended to borrowers with ticket sizes above ₹50,000, credit histories exceeding 5 years, and mid-to-low risk profiles.  

This indicates a gradual shift towards relatively stronger borrower segments within digital lending. 

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Conclusion 

The figures indicate a rise in lending activity with stable credit performance. Digital lenders continue to account for a large share of personal loan volumes during the period. 

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