India’s account aggregator system facilitates loan disbursement of Rs 462B in H1 FY25
The system, which enables secure and consent-based financial data sharing, is fuelling broader credit penetration across personal, MSME, and motor loans.
India’s account aggregator (AA) framework is rapidly transforming digital lending, facilitating Rs 462 billion in loan disbursements in the first half of FY25, according to a report by Sahamati, the industry alliance of the AA ecosystem in the country.
The system, which enables secure and consent-based financial data sharing, is fuelling broader credit penetration across personal, MSME, and motor loans.
An account aggregator (AA) is a digital infrastructure that enables individuals and businesses to securely share their financial data with banks, NBFCs, and other financial institutions in a consent-based manner. Launched in September 2021, the AA framework facilitates seamless financial data exchange, allowing lenders to assess creditworthiness more efficiently.
Since its launch in September 2021, the AA framework has supported total disbursements of Rs 887 billion (according to self-reported data from top lending financial intelligence units) with ecosystem-wide estimates reaching Rs 1.328 trillion. The number of loans processed through the ecosystem has surged to 9.7 million since its launch, with 5.47 million loans facilitated in H1 FY25 alone.
The report highlights that AAs now account for 10.52% of personal loans, while MSME and motor loan penetration stand at 1.14% and 1.50%, respectively. The average ticket size of loans facilitated in H1 FY25 was Rs 84,507, slightly lower than the cumulative average of Rs 92,086 since the system’s inception.
Users link their bank accounts, insurance policies, and investment details to an AA platform, which then shares the data with financial service providers upon user's consent. This streamlines loan approvals, enhances access to credit—especially for MSMEs—and improves personal finance management.
Regulated by the Reserve Bank of India (RBI), AAs ensure data privacy, encryption, and a user-centric approach, making the country's financial system more transparent and inclusive.
Edited by Swetha Kannan
