Digital NBFCs' share of personal loans grows both in value and volume terms

Digital NBFCs accounted for 77 per cent of personal loan sanction volumes and 19 per cent of sanction value in FY26, even as growth in loan volumes slowed sharply

The value of personal loans for digital non-banking financial companies (NBFCs) has steadily grown to 19 per cent of the total personal loans in 2025-26 (FY26) from just 12 per cent in FY23, data from the Fintech Association for Consumer Empowerment (FACE) shows. 

 

While these companies saw growth in sanction value rise to 85 per cent in FY23, the pace moderated to 39 per cent in FY26.

 

But it remained significantly higher than the 19 per cent growth recorded in FY25.

 

Their share of total personal loan sanction volumes has risen to 77 per cent in FY26 from 66 per cent in FY23, although it remains below the 80 per cent peak recorded in FY25.

 

Despite their growing market share, digital NBFCs have seen a steady slowdown in loan sanction volume growth, from 80 per cent in FY23 to 25 per cent in FY25 and just 12 per cent in FY26.

 

These digital NBFCs sanctioned 132 million such loans with other NBFCs and banks disbursing 26 million and 14 million loans during FY26. 

 

Meanwhile, digital NBFCs saw ₹2.14 trillion in loan value during the same year whereas other NBFCs and banks saw disbursements worth ₹2.36 trillion and ₹6.94 trillion. 

 

The growing value and volume share of digital NBFCs came on the back of serving underserved segments that need small-ticket loans.

 

This is visible in the average ticket size of personal loans given by digital NBFCs at just ₹16,238 in FY26. 

 

In comparison, the average ticket sizes of other NBFCs and banks were at least five times and 30-fold higher than digital NBFCs at ₹90,547 and ₹4.91 lakh, respectively.