Credit extended by major Indian non-banking financial companies and housing finance companies grew 15.4% year on year in September 2026, accelerating from 13.3% a year earlier, Reserve Bank of India data show.
The aggregate hides a widening difference between borrower segments. Retail and agricultural lending strengthened, while credit growth to industry and services moderated.
Retail lending leads the acceleration
Retail loans grew 21.9% from a year earlier, compared with 16.8% growth in September 2025. Housing loans, loans against gold jewellery and vehicle loans all recorded faster growth.
Credit to agriculture and allied activities expanded 17.8%, a marked increase from 5.2% a year earlier. These gains show NBFC balance sheets continuing to channel finance toward households and borrowers outside the largest corporate segment.
Industry credit growth slowed to 7.4% from 10.2%. The RBI said infrastructure lending remained subdued within the industry portfolio. Services credit growth moderated to 17.3% from 23%, although commercial real estate expanded strongly and lending to trade and transport operators accelerated.
Growth quality matters as much as volume
Faster retail lending can support consumption, housing and vehicle demand, but it also increases the importance of underwriting discipline. Gold-backed loans have collateral, yet their performance can still be affected by loan-to-value practices, refinancing behaviour and changes in the underlying asset price.
For vehicle finance, lenders must distinguish between credit growth driven by healthy sales and expansion achieved through longer tenors or weaker borrower selection. Commercial-real-estate growth similarly needs to be assessed against project cash flows, leasing conditions and concentration limits.
The RBI data are provisional and cover a sample of upper- and middle-layer NBFCs and housing finance companies. The sample represents about 87% of the sector’s total credit measured against the outstanding amount published for September 2025, making it broad but not exhaustive.
The combination of 15.4% overall growth and slower industry lending suggests the headline is being supported by retail, agriculture and selected services rather than uniformly stronger corporate credit.
Investors should watch delinquency trends, provisioning, funding costs and capital buffers alongside loan growth. The next releases will show whether the September acceleration persists and whether the gap between retail and industrial credit continues to widen.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
