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NBFCs Account for 47% of India's New Consumer Borrowers
A report says non-bank finance companies, or NBFCs, are helping many people in India get loans.
In June 2026, they provided nearly half of the loans to people getting formal credit for the first time.
They are especially active in smaller loans and in semi-urban and rural areas.
The share of NBFC customers from those areas has grown over the past decade.
NBFCs also serve more women, younger borrowers and people with lower credit scores.
But first-time borrowers now make up a smaller share of their new loans than they did in 2016.
The report found that more NBFC customers had above-prime credit scores in 2026 than in 2019.
It also reported a fall in serious late payments over that period.
The report says NBFCs may need to keep supporting customers as their borrowing needs change.
A FIDC-TransUnion CIBIL report says NBFCs accounted for 47% of new-to-credit consumer loan originations in June 2026.
NBFCs' share of retail loan originations rose from 33% to 43% over the past decade, while their share by loan value was 30%.
Loans up to ₹2 lakh made up 82% of consumer-credit originations; NBFCs provided 47% of loans in this segment, compared with banks' 17%.
Semi-urban and rural consumers represented 59% of NBFC borrowers in June 2026, up from 31% in June 2016.
From June 2019 to June 2026, the share of above-prime consumers in NBFC portfolios rose from 24% to 32%, while 90-plus-day delinquency fell from 2.7% to 1.1%.
- Who
- Non-banking financial companies (NBFCs), as assessed in a report by the Finance Industry Development Council and TransUnion CIBIL.
- What
- NBFCs accounted for 47% of new-to-credit consumer originations in June 2026, according to the report.
- Where
- India.
- When
- The report's latest figures are mainly for June 2026, with comparisons spanning 2016 to 2026.
- Why
- The report describes NBFCs' growing role in extending formal credit, particularly through smaller loans and lending in semi-urban and rural markets.
Report findings
Sector leaders' perspective
NBFCs' role in credit
Report findings
The report quantifies NBFCs' expanding reach, including their share of new borrowers and smaller-ticket lending.
Sector leaders' perspective
TransUnion CIBIL CEO Bhavesh Jain said the sector now reaches beyond first-time borrowers and should build deeper, longer customer relationships.
Future contribution
Report findings
The report says first-time borrower growth is moderating and identifies continued relevance across more stages of customers' credit journeys as an opportunity.
Sector leaders' perspective
FIDC CEO Raman Aggarwal said reach, innovation and responsible lending will remain central to NBFCs' economic contribution.
Key facts
- Report
- Bharat Nirman: NBFC Forming the Foundation of Credit Dispersion
- Authors
- Finance Industry Development Council (FIDC) and TransUnion CIBIL
- NBFC share of new-to-credit originations
- 47% as of June 2026
- NBFC share of retail loan originations
- 43%, up from 33% over the past decade
- NBFC share by loan value
- 30% in June 2026
- Semi-urban and rural share of NBFC borrowers
- 59% in June 2026, up from 31% in June 2016
- 90-plus-day balance-level delinquency
- 1.1% in June 2026, down from 2.7% in June 2019
Quotes
Raman Aggarwal
CEO of the Finance Industry Development Council
“The next phase will be about building deeper and longer relationships with customers as their credit needs evolve over time.”
CNBC TV 18
“far more deeply embedded in India's credit system than it was a decade ago.”
CNBC TV 18
Sources
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