Personal loan sanctions in India reached about 4.9 crore loans valued at Rs 2.99 trillion in the first quarter of FY 2026-27, driven by small-ticket digital borrowing and increased outreach to younger and non-metro customers, as per the FACE report.
Personal loan sanctions in India climbed in the first quarter of financial year 2026-27, underscoring the continued rise of small-ticket digital borrowing. The Fintech Association for Consumer Empowerment, an RBI-recognised self-regulatory organisation for fintech firms, said total sanctions reached about 4.9 crore loans, worth Rs 2.99 trillion, in the April-to-June period.
FACE said digital non-banking financial companies remained a major force in that market, sanctioning 3.4 crore loans worth Rs 64,656 crore. That meant digital NBFCs accounted for roughly 70% of the total number of personal-loan sanctions across digital NBFCs, other NBFCs and banks, according to reporting based on the association’s latest “Digital Personal Loans: April-June 2026” review.
The report also pointed to the dominance of smaller loans in the segment. The average ticket size for digital NBFC lending was Rs 18,802, while the overall market average was close to Rs 19,000, reflecting the greater weight of low-value borrowing. FACE said the sanctioned value for digital NBFC loans rose 4% from the previous quarter and 50% from the same period a year earlier.
Other coverage of the report said digital lending is increasingly reaching younger borrowers and customers in smaller cities. Moneycontrol reported that the study, which draws on credit bureau CRIF High Mark data covering more than 110 digital NBFCs from April 2022 to June 2026, found a growing tilt towards non-metro India. Nation Press, citing the same report, said 40% of sanction value went to Tier III cities and beyond, 58% to borrowers under 35, and women accounted for 18% of sanction value, highlighting a continuing gap in formal credit access.
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