India’s credit landscape is undergoing a structural transformation. Loans that once required branch visits, paperwork and waiting periods are now increasingly accessed through mobile apps. Digital lending, which provides disbursal of loans through seamless online platforms, has expanded rapidly, powered by smartphone penetration, Aadhaar-based identity systems and real-time payments infrastructure.
Recent data highlights the scale of this transition. In the first half of FY2025-26, digital lenders in India disbursed ₹97,381 crore worth of personal loans, representing a 25% year-on-year increase, according to the Fintech Association for Consumer Empowerment (FACE)1. During the same period, 6.4 crore digital personal loans were sanctioned, accounting for roughly 80% of personal loan volumes in the country1.
