India Personal Loan Market Size, Share & Research Report (2025–2033)

According to a new report by UnivDatos, the India Personal Loan Market is expected to reach USD million in 2033 by growing at a CAGR of 18.70% during the forecast period (2025-2033). A rapidly rising middle class and growing consumer spending in India are driving the demand for personal loans, as more people are turning to quick and flexible financing solutions. With lending going digital and a paperless loan process taken up, credit has become easier and faster to access for tech-savvy users. Moreover, with higher levels of financial inclusion and deeper mobile penetration in Tier II and Tier III cities, the lenders can cater to markets which otherwise were not served before. These factors, complemented by low interest rates and an improving credit infrastructure, are collectively steering steady and widespread growth in the Indian personal loan market.

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According to RBI data, the personal loans to total credit stood at 32.6% in February 2024 from 30.6% in 2023, for eg. Further, in 2023, home loans accounted for about 47.2% of total retail loans in India.

Laws & Regulatory Guidelines for Personal Loans in India

Regulatory Update on RBI’s Consolidated Digital Lending Framework – May 2025

The Reserve Bank of India (RBI) issued comprehensive and consolidated guidelines titled Reserve Bank of India (Digital Lending) Directions, 2025 vide circular RBI/2025-26/36 dated May 8, 2025. These Directions supersede and replace earlier regulations, including:

· The Guidelines on Digital Lending dated September 2, 2022 [RBI/2022- 23/111/DOR.CRE.REC.66/21.07.001/2022-23], and

· The Guidelines on Default Loss Guarantee (DLG) dated June 8, 2023 [RBI/2023- 24/41/DOR.CRE.REC.21/21.07.001/2023-24].

These new Directions aim to consolidate the digital lending framework while introducing important clarifications and refinements that strengthen customer protection, transparency, data privacy, and governance of Lending Service Providers (LSPs).

Click here to view the Report Description & TOC https://univdatos.com/reports/india-personal-loan-market

According to the report, the impact of Personal Loan has been identified to be high for the North India area. Some of how this impact has been felt include:

North India is expected to grow with a significant CAGR during the forecast period (2025-2033). With more people becoming computer literate and fintech stepping in, personal loans are spreading quickly among people in both Delhi-NCR and many Tier 2 cities like Jaipur and Lucknow. Ever more people employed and running their businesses are leading to an increase in originations with NBFCs and private banks. The increased growth in this region comes from special lending, more branches, and more awareness of credit.

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Global Digital Payment Market: Current Analysis and Forecast (2020-2026)

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India Buy Now Pay Later Market: Current Analysis and Forecast (2025-2033)

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