Archive · 6 Aug 2025
Indian Retail Credit Boom Creates Growth for NBFCs
A new report says India's retail credit market is growing fast, creating chances for financial companies called NBFCs.
The market is expected to keep growing rapidly.
People are borrowing more for homes, cars, and other needs.
Although credit use is increasing, India has less credit compared to its GDP than other major economies, suggesting there's a lot of room for further growth.
Crisil report highlights growth opportunities for Indian NBFCs in the retail credit market.
The Indian retail credit market is projected to grow at a CAGR of 14-16% between FY25 and FY28.
Total retail credit in India reached ₹82 lakh crore in FY25, with a 15.1% CAGR since FY19.
Growth is driven by demand for housing, auto, credit cards, and personal loans.
India's household credit-to-GDP ratio (42%) lags behind countries like China, the US, and UK.
- Who
- Crisil Intelligence.
- What
- Growth opportunities for NBFCs in the Indian retail credit market.
- When
- FY25 and FY28 for projected growth; FY19 to FY25 for historical data.
- Where
- India
- Why
- Due to rising demand and positive sentiment.
Current Status
Future Outlook
Credit Penetration
Current Status
Retail credit penetration is lower than other major economies.
Future Outlook
Retail credit demand is growing.
- Report Source
- Crisil Intelligence
- FY25 Retail Credit
- ₹82 lakh crore
- Retail Credit CAGR (FY19-FY25)
- 15.1%
- Projected CAGR (FY25-FY28)
- 14-16%
- India's Household Credit-to-GDP
- 42%
Sources
India is on track to gain bigger share in global output: Morgan Stanley
Deloitte, Morgan Stanley bullish on India’s growth despite Trump’s 25% tariff blow
India Is Not A "Tariff King": US Claims vs Reality
India’s retail credit boom offers major growth opportunity for NBFCs: Crisil
'Emerging From Low Point': Chinese Media Stresses Mutual Benefit, Shared Development With India
