Digital Lending Reshapes India's Retail Credit: HDB Financial Services Reveals Key Trends

• India's retail credit landscape is undergoing a structural transformation driven by rising consumer aspirations and digital-first lending models, as observed by HDB Financial Services.
• Consumers show confidence in discretionary spending, shifting towards premium products like high-value smartphones, with aspirational consumption reaching Tier 2 and Tier 3 markets.
• Nearly 99% of loans are now processed digitally, significantly reducing turnaround times and reliance on physical documentation.
• Lenders leverage bureau data, behavioural analytics, and AI for faster decisions, sharper risk assessment, and wider access to credit.
• Credit growth is strong across established hubs and emerging centers, with Uttar Pradesh, Tamil Nadu, Maharashtra, Rajasthan, Gujarat, Betul, Hooghly, and Alleppey showing significant demand.

Why It Matters: Digital-first lending and premiumisation are fundamentally transforming India's retail credit market.