Mumbai: The Digital Credit and Inclusion Index 2026 (DCII 2026), launched by Pahlé India Foundation in collaboration with Amazon Pay, has found that Tier-2 cities are leading India’s digital credit and inclusion journey.
India’s first composite benchmark on digital credit is based on a primary survey of more than 5,000 respondents across 100 cities in 20 states.
The Digital Credit and Inclusion Index 2026 examines who accesses digital credit, how easily and frequently they use it, why they borrow, whether they trust digital credit, and whether its use contributes to stronger financial outcomes.
The index seeks to address a gap in India’s financial inclusion landscape by going beyond benchmarks that largely track digital payment adoption or aggregate loan volumes.
In its inaugural edition, India recorded a national Digital Credit and Inclusion Index 2026 score of 55.85 out of 100, placing the country in the “Emerging and Served” category, which covers scores between 51 and 75.
The score reflects a maturing ecosystem in which payment infrastructure and awareness of digital loans are well established.
Access emerged as the strongest pillar, with a score of 61.24, followed by Adoption at 57.17. Impact, which measures whether digital credit is helping households become more financially secure, lagged at 49.16.
According to the Digital Credit and Inclusion Index 2026, India has made significant progress in expanding access to digital credit.
The next opportunity is to deepen trust and adoption, encourage consumers to borrow more purposefully, build confidence in digital credit on par with digital payments, and translate access into measurable financial resilience and savings outcomes.
Rajiv Kumar, Chairman, Pahle India Foundation, said: “Financial inclusion must be measured by outcomes, not just access and usage. The DCII tracks this, whether digital credit is strengthening financial resilience across cities, genders and income groups.
Developed with Amazon Pay and tracked annually, we hope the index helps policymakers and financial institutions identify gaps and direct efforts where they matter most.”
Vikas Bansal, CEO, Amazon Pay India, said: “India’s world-class digital payment infrastructure has transformed how millions transact. The next step is to make digital credit equally accessible, trusted and relevant.
The finding that Tier-2 cities lead digital credit inclusion signals where the next wave of growth could emerge. With 75% of our customers based in Tier-2 and Tier-3 cities, insights from the DCII will help us build more relevant credit and savings experiences in these markets while addressing untapped opportunities in Tier-1 cities.
As India advances towards Viksit Bharat 2047, the DCII will help track how digital credit translates into real financial progress.”
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Tier-2 Cities Lead India’s Digital Credit Story
The Digital Credit and Inclusion Index 2026 reveals a shift in the geography of digital borrowing, with Tier-2 cities emerging as the leading centres of digital credit inclusion.
Tier-2 cities recorded an average DCII score of 58.64, ahead of Tier-1 cities at 53.1 and Tier-3 cities at 55.7.
The Digital Credit and Inclusion Index 2026 found that Tier-2 cities lead digital credit inclusion across age, gender, income, occupation and education.
This marks a distinction between India’s digital payment and digital credit journeys. While Tier-1 cities continue to lead in digital payments, the Digital Credit and Inclusion Index 2026 identifies Tier-2 cities as the strongest centres of digital credit adoption.
Coimbatore, Surat, Nagpur, Indore, Prayagraj, Ranchi, Ghaziabad and Ludhiana are among the cities driving this growth.
Tier-2 cities also recorded the narrowest gender gap in digital credit inclusion. The gap stood at 2.8 points in Tier-2 cities, compared with 9.1 points in Tier-1 cities.
The findings indicate that stronger digital credit adoption in Tier-2 cities is accompanied by more balanced participation.
Formal Employment Narrows the Digital Credit Gender Gap
The Digital Credit and Inclusion Index 2026 also highlights the role of economic agency in women’s financial inclusion.
While men score higher than women overall on digital credit inclusion, the gap reverses among salaried respondents. Salaried women recorded a DCII score of 62.0, compared with 60.2 for salaried men.
The Digital Credit and Inclusion Index 2026 also found that the gender gap is narrowing across generations. Among respondents aged 18–29, the gender gap narrowed to 2.9 points, compared with 4.6 points among respondents aged 60 and above.
The findings suggest that equal economic access, particularly through formal salaried employment, can help close and even reverse the gender gap in digital credit inclusion.
Digital Credit Awareness High, But Trust Remains a Challenge
Awareness is no longer the primary barrier identified by the Digital Credit and Inclusion Index 2026. As many as 94.4% of respondents said they were aware of at least one form of digital credit.
However, trust remains a challenge. Confidence in digital borrowing stood at 52.5, compared with 69.7 for digital payments. The 17-point gap highlights the need for greater trust, transparency and simplicity in the digital borrowing experience.
The Digital Credit and Inclusion Index 2026 also found that digital credit currently plays a limited role during periods of financial stress.
When respondents last faced a cash shortfall, 48.2% turned to savings, while only 6.9% used a digital loan app and 3.4% used Buy Now, Pay Later (BNPL).
The findings indicate that while digital credit is increasingly available, it has yet to become a meaningful financial cushion for many respondents.
Digital Participation Growing, But Credit Visibility Remains Uneven
The Digital Credit and Inclusion Index 2026 highlights a persistent structural challenge: being digitally active does not necessarily make an individual visible to the formal credit system.
Homemakers, gig workers, daily-wage earners, students and others outside formal salaried employment recorded scores around 11 points lower than salaried and business respondents on digital credit inclusion.
The divide is closely linked to income and occupation. The Digital Credit and Inclusion Index 2026 highlights the need to complement traditional income documentation with digital transaction histories and cash-flow-based assessments, particularly for self-employed, gig and other irregular-income workers.
Digital Credit Use Shifts From Consumption to Productive Purposes
The Digital Credit and Inclusion Index 2026 found that digital credit is largely being used for consumption. Around 59% of respondents reported using digital credit to purchase electronics and home appliances.
Productive uses of digital credit, including investing in a business, building assets or supporting financial planning, remain relatively low, with a score of 43.2.
However, productive use rises significantly among frequent users. The Digital Credit and Inclusion Index 2026 found that 64% of frequent users reported using digital credit productively.
The findings suggest that as consumers become more familiar with digital credit, they are more likely to use it for longer-term financial goals. The next goal is not simply acquiring new users but deepening the habits of existing users.
Digital Credit and Inclusion Index 2026 Sets Priorities for the Next Phase
The Digital Credit and Inclusion Index 2026 signals a new phase in India’s digital financial journey. With access and digital infrastructure established, the opportunity is to make credit more trusted, purposeful and inclusive, while translating adoption into stronger financial outcomes.
The report sets priorities for government, regulators, financial institutions, fintechs and researchers.
These include measuring digital credit inclusion consistently, using consent-based data for alternative underwriting, designing for irregular incomes, strengthening transparency and responsible borrowing, deepening Tier-2 and Tier-3 participation, and strengthening the credit-savings link.
The Digital Credit and Inclusion Index 2026 also calls for tracking whether access to digital credit improves financial resilience.
The inaugural index provides a benchmark for examining digital credit inclusion across cities, genders and income groups and is expected to be tracked annually.
