Digital lenders double down on small loans as credit quality improves

Unsecured personal loans below Rs 1 lakh now make up over two-thirds of loans from digital lending startups, up from 55% in FY23, Experian data shows. Loans between Rs 1–5 lakh and above Rs 5 lakh have declined. Startups favour small-ticket loans for faster approvals and repeated borrowing, boosting high-velocity lending.