Digital NBFCs record nearly half of all outstanding personal loans

At the end of September 2025, 59.9 million digital personal loans were outstanding with a value of Rs 1.28 trillion, representing nearly half of all outstanding personal loans in volume.

 

Digital non-banking financial companies (NBFCs) account for 49 per cent of outstanding personal loan volumes, but only 8 per cent of the value as of September.

 

Outstanding digital personal loans saw a 25 per cent rise in volume from 48 million and a 41.7 per cent increase in value from Rs 90,977 crore since March 2024.

 

As of June 2025, the number of such outstanding loans was recorded at 57 million with a value of Rs 1.2 trillion, according to data from the Fintech Association for Consumer Empowerment (FACE), a self-regulatory body for fintech companies in the country.

 

In comparison, other NBFCs had personal loans outstanding of 25.8 million, with a total value of Rs 2.71 trillion as of September 2025.

 

Banks had a lower outstanding volume than digital NBFCs at 37.7 million; however, the cumulative outstanding value was recorded at a higher Rs 11.4 trillion during the same period.

 

The average outstanding per loan for digital NBFCs, other NBFCs, and banks was recorded at Rs 21,338, Rs 105,279 and Rs 302,206, respectively.

 

During the first half of financial year 2025-26 (FY26), digital NBFCs recorded disbursal of 64 million personal loans with a total value of Rs 97,381 crore. Other NBFCs saw disbursal of 10 million personal loans with a value of Rs 1.07 trillion.

 

Banks disbursed 6 million personal loans with a cumulative value of Rs 3.08 trillion. 

Outstanding: Digital personal loans (as of September 2025)

          Type Volume (in million) Value (in Rs crore) Digital NBFCs 59.9 127,917 Other NBFCs 25.8 271,476 Banks 37.7 1,138,782      

Source: Fintech Association for Consumer Empowerment (FACE)