Small-ticket loans drive India's digital lending boom: Average ticket size rises to ₹18,802, says report

Digital NBFCs continued to cater to borrowers seeking relatively small-value personal loans in Q1 FY26-27, even as the average ticket size increased 15% from FY25-26. Digital NBFCs sanctioned 3.4 crore personal loans worth ₹64,656 crore in the first quarter of FY27, accounting for 70% of the overall personal loan sanction volume and 22% of sanction value, according to a report by the Fintech Association for Consumer Empowerment (FACE). The report analysed data from CRIF High Mark covering more than 110 digital NBFCs from April 2022 to June 2026.

The average ticket size stood at ₹18,802 in Q1 FY26-27, up about 15% from FY25-26. However, the figure remained significantly below the average sanction size of ₹70,025 for other NBFCs and ₹4.52 lakh for banks. This highlights the continued focus of digital lenders on smaller-value credit requirements.

The composition of digital loans also shows the prominence of smaller tickets. Loans below ₹25,000 accounted for 27% of sanction value in Q1 FY26-27, while loans between ₹25,000 and ₹50,000 contributed another 12%.

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At the same time, the market is gradually moving towards larger loans, with about 60% of sanction value coming from loans above ₹50,000, borrowers with a bureau vintage of five years or more and mid-to-low-risk customers.

Key numbers

Source: FACE Digital Personal Loans report, Apr-Jun 2026.

Value growth outpaces volume

Digital personal loan volumes increased 14% year-on-year and 2% sequentially during the quarter, reaching 3.4 crore loans. Sanction value, however, grew much faster, rising 50% year-on-year and 4% from the previous quarter to ₹64,656 crore.

The divergence between volume and value growth indicates that the average amount borrowed has been increasing, reflected in the rise in the average ticket size to ₹18,802.

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Digital lenders also continue to have a strong presence among younger borrowers. About 58% of sanction value went to customers below 35 years, while around 40% of sanction value went to borrowers in Tier III cities and beyond. The report said digital lending models are able to reach customer segments seeking small-value loans for short periods.

The portfolio has expanded alongside this demand. As of June 2026, outstanding digital personal loans stood at 5.6 crore accounts worth ₹1.54 lakh crore, representing about 28% growth in value from June 2025.

Importantly, the expansion has been accompanied by an improvement in reported portfolio quality. The 90-plus days past due ratio stood at 1.4% in June 2026, compared with 3.3% in March 2023.

Overall, the data points to a digital personal loan market built around high volumes of relatively small loans, while rising ticket sizes suggest that borrowing is gradually shifting towards higher-value credit as the segment matures.

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