Tier-2 cities are emerging as the strongest centres of digital credit adoption, while salaried women record higher digital credit inclusion scores than salaried men, the DCII 2026 report found. | Photo Credit: istockphoto

Tier-2 cities are driving digital credit adoption in the country, and salaried women are borrowing more than their male counterparts, according to the Digital Credit and Inclusion Index (DCII) 2026 released on Thursday.

The index, launched by Pahle India Foundation, in collaboration with Amazon Pay, found that digital credit is largely used for consumption, with 59 per cent of respondents using it to purchase electronics and home appliances.

However, productive use of digital credit, such as investing in a business, building assets, or supporting financial planning, remains relatively low, a joint statement on DCII by Pahle India Foundation and Amazon Pay said.

“While Tier-1 cities continue to lead in digital payments, Tier-2 cities are emerging as the strongest centres of digital credit adoption. Coimbatore, Surat, Nagpur, Indore, Prayagraj, Ranchi, Ghaziabad and Ludhiana are among the cities driving this growth,” it said.

Survey tracks digital credit inclusion

Based on a survey of more than 5,000 respondents across 100 cities in 20 states, the DCII examined who accesses digital credit, how easily and frequently they use it, why they borrow, whether they trust it, and whether its use contributes to stronger financial outcomes, going beyond existing benchmarks that largely track payment adoption or aggregate loan volumes.

“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,” Amazon Pay India CEO Vikas Bansal said.

Salaried women surpass men on DCII score

The survey report found that Tier-2 cities also show the narrowest gender gap in digital credit inclusion — 2.8 points, compared with 9.1 points in Tier-1 cities — suggesting that stronger adoption is also accompanied by more balanced participation.

“While men score higher than women overall on digital credit inclusion, the gap reverses among salaried respondents. Salaried women record a DCII score of 62.0, compared with 60.2 for salaried men. The trend is also narrowing across generations,” the report said.

Savings remain preferred during cash shortfalls

According to the report, when respondents last faced a cash shortfall, 48.2 per cent turned to savings, while only 6.9 per cent used a digital loan app and 3.4 per cent used Buy Now, Pay Later (BNPL).

“Digital credit may be increasingly available, but it has yet to become a meaningful financial cushion, the report said.

Published on September 10, 2026