Tier II cities drive digital credit boom as 55% borrowers spend online: Survey

More than half of personal loan borrowers in India used credit for online shopping in 2025, while over half spent on food delivery, according to insights released by digital lending platform Moneyview.

The findings are based on a survey covering more than 700 districts and point to a shift in borrowing behaviour toward digital-first consumption and lifestyle-led spending.

Moneyview’s survey shows that Indians in 2025 displayed renewed confidence in borrowing, using credit not only for essential expenses but also for lifestyle upgrades, mobility, home improvement, education and family-related milestones.

The data reflects a broader trend within the financial sector, where credit is increasingly being used as a planned financial tool rather than emergency support.

Tier II cities see strongest growth in digital credit demand

The survey found that emerging cities such as Coimbatore, Indore, Bhubaneswar, Mysuru, Jaipur and Nagpur recorded the fastest rise in digital credit demand. Moneyview said the growth in these cities was driven by higher smartphone penetration and increased trust in digital financial products.

While healthcare and household needs remained steady borrowing triggers, categories linked to personal progress showed the fastest growth, indicating rising aspiration levels among borrowers. Digital consumption also remained strong throughout the year, with personal loan users actively spending across online shopping platforms, food delivery services and fintech applications.

Demand was particularly strong in non-metro markets, which Moneyview said are now showing credit maturity levels comparable to metro cities.

Spending patterns and decision-making vary by gender

The survey also highlighted differences in borrowing decision-making patterns. Family continued to play a significant role for women borrowers, with 27 per cent citing family input before borrowing. Among men, 21 per cent reported seeking advice from friends, colleagues or financial advisors.

Digital-first financial behaviour expanded further in 2025. According to the data, 55 per cent of personal loan users spent on online shopping, 52 per cent on food ordering, and 40 per cent used mobile banking applications. AI-led journeys and mobile-first platforms became increasingly common across borrower segments.

Commenting on the findings, Sushma Abburi, Chief Business Officer, Moneyview, said, “India’s consumption patterns in 2025 reflect a nation ready for its next leap. Emerging cities and digitally-native users are shaping a confident, future-ready financial culture. Trust, convenience and digital readiness are redefining how India borrows, spends and plans. At Moneyview, we remain committed to building accessible and user-friendly financial products that empower individuals, whether for everyday expenses or long-term aspirations.”

Moneyview said it will continue focusing on expanding access to seamless and affordable financial products, with the aim of deepening financial inclusion and supporting underserved and aspirational populations as digital adoption accelerates across the country.