The personal loan holdings of digital nonbank financial companies (NBFCs) in India are projected to exceed ₹3.6 lakh crore (equivalent to approximately US$40.71 billion) by the 2030 fiscal year. This forecast, made by CareEdge Analytics & Advisory, indicates a compound annual growth rate (CAGR) of 26% to 28% between fiscal years 2025 and 2030.
Tavi Shah, senior director for CareEdge Research, stated in a report published on October 29, 2025, that “Digital NBFCs are poised for rapid growth over the medium term,” citing increased digital adoption, a growing range of customers, and favorable regulations as key drivers. CareEdge also noted that co-lending agreements between digital NBFCs and banks help to expand credit availability while sharing risk.
The advisory firm did caution that risks remain, including concerns over data privacy, cyber threats, overly aggressive lending, and the potential for asset quality to worsen in unsecured, high-growth credit products.
However, Kalpesh Mantri, assistant director for CareEdge Research, anticipates that the asset quality for these digital NBFCs will remain stable. This is expected due to their focus on improving credit underwriting policies and regularly writing off non-performing assets (NPAs). Furthermore, their capital adequacy is expected to stay high, supported by ongoing funding from institutional and venture investors.
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