Tier II cities lead India’s digital credit boom in 2025, Moneyview survey shows

Indians in 2025 showed renewed borrowing confidence, using credit not just for essentials but increasingly to upgrade lifestyles, invest in mobility, improve homes, pursue education and mark family milestones. This shift mirrors wider industry observations indicating that India’s financial ecosystem is entering a phase where credit is viewed as a strategic enabler of progress rather than emergency support, according to Moneyview, a digital lending platform, released insights from its recent survey on India’s financial behaviour, capturing a decisive shift in financial behaviour across 700+ districts.

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."

According to the survey, Tier II cities show fastest rise in digital credit usage.

Moneyview’s data reveals that India’s emerging cities such as Coimbatore, Indore, Bhubaneswar, Mysuru, Jaipur and Nagpur recorded the strongest surge in credit demand, reflecting rising smartphone-led adoption and greater trust in digital financial products. While healthcare and household needs remained consistent borrowing triggers, progress-led categories saw the fastest growth, signalling a confident and aspirational borrower segment. Digital consumption patterns also strengthened, with personal loan users actively spending on online shopping, food delivery and fintech apps through the year.

Demand surged most strongly across cities such as Coimbatore, Indore, Bhubaneswar, Mysuru, Jaipur and Nagpur, signalling that non-metro markets are increasingly exhibiting metro-level credit maturity. Decision-making patterns also varied by gender: family continued to play a decisive role for women borrowers (27%), while men (21%) were more inclined to seek inputs from friends, colleagues or financial advisors before borrowing.

Digital-first activity increased notably, with 55% of personal loan users spending on online shopping, 52% on food ordering and 40% using mobile banking apps, while AI-led journeys and mobile-first financial behaviour became the norm across borrower cohorts, per the survey.