New Delhi, June 5 -- Digital personal lenders are showing better repayment trends, but the improvement comes alongside a portfolio that still skews toward riskier borrowers, according to a report by the Fintech Association for Consumer Empowerment (FACE) analysing digital personal loans.

The share of digital personal loans more than 90 days overdue decreased to 1.4% from 3.3% in March 2023, according to FACE. However, nearly 60% of the sanctioned value in FY26 went to medium-, high-, or very high-risk borrowers. The mix of borrowers continued to challenge the industry's underwriting capacity, even as the main asset-quality figures showed improvement. Digital non-banking financial companies approved 13.2 crore personal loans worth Rs.2.15...