India’s digital NBFCs poised for strong loan growth through 2030

Rising digital adoption and a supportive regulatory framework will push growth.

The personal loan portfolio of India’s digital nonbank financial companies (NBFCs) is expected to cross Rs 3.6 lakh crore (INR3.6t or US$40.71b) by FY2030, according to estimates by CareEdge Analytics & Advisory.

This represents a compound annual growth rate (CAGR) of 26% to 28% between FY2025 to FY2030.

“Digital NBFCs are well-positioned for exponential growth over the medium term, driven by rising digital adoption, expanding customer segments, and a supportive regulatory framework,” said Tavi Shah, senior director for CareEdge Research, in an industry insights report published on 29 October 2025.

Co-lending models with banks and digital NBFCs further enhance credit reach and risk sharing from a risk–benefit perspective, CareEdge said.

Risks persist around data privacy, cyber threats, aggressive lending practices, and potential for asset quality deterioration in high-growth unsecured credit products, it further noted.

“Asset quality of Digital NBFCs is expected to remain range-bound due to their increased focus on enhancing credit underwriting policies and write-off of NPAs periodically. Also, their capital adequacy is expected to remain strong, aided by continued funding support from institutional and venture investors,” said Kalpesh Mantri, assistant director for CareEdge Research.