Home / Business and Economy / Digital Loans Surge 25% Amidst RBI Oversight
Digital Loans Surge 25% Amidst RBI Oversight
3 Dec
Summary
- Digital lenders disbursed Rs 97,381 crore in personal loans, a 25% YoY increase.
- Younger borrowers under 35 accounted for 60% of digital loan value.
- Portfolio quality improved, with delinquencies falling to 2.1%.
Digital lenders experienced substantial growth in the first half of fiscal year 2025-2026, disbursing personal loans totaling Rs 97,381 crore. This figure represents a robust 25% year-on-year increase, indicating a strong recovery and expansion in the digital lending market. These lenders issued 6.4 crore loans, making up 80% of all personal loans disbursed nationally, though their value constituted only 19% of the market, highlighting a focus on small-ticket, short-tenure credit.
The market's momentum accelerated with a 26% sequential growth over the previous half-year, reversing a prior contraction. The average digital loan amount also saw a healthy rise of approximately 14% year-on-year, reaching Rs 15,177. Notably, younger demographics and underserved areas are benefiting greatly, with borrowers under 35 securing 60% of the sanctioned value and tier-III towns and rural areas contributing significantly to loan disbursements.
