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NBFCs Account for 47% of New-to-Credit Consumer Loans in India: FIDC-TransUnion CIBIL Report
NBFCs Lending: They account for nearly half (47 percent) of total consumer loans by June 2026. According to a joint report by the Finance Industry Development Council (FIDC) and TransUnion CIBL, 36 percent of consumers obtained loans through NBFCs. Let's explore this in detail.
Non-banking financial companies (NBFCs) have become the entry point into formal financing in India. They constitute almost half (47%) of all consumer financing by June 2026. As per a collaborative report by Finance Industry Development Council (FIDC) and TransUnion CIBL, 36% of the consumers availed themselves of the loans through NBFCs. Though 46% of all credit-active consumers (consumers or institutions having an active (live) loan or credit card account) have taken loans from the NBFCs, the report indicates that the NBFCs have grown consistently over the past decade, growing their credit-active consumer base by about seven times and rising their share of retail loan disbursements from 33% to 43%. Moreover, the share of first-time borrowers in the loans disbursements made by the NBFCs has come down from 28% in June 2016 to 16% in June 2026. This implies that NBFCs are gradually catering to consumers who have a prior credit experience. Although NBFCs made up 43% of all retail loan disbursements by volume, they accounted for 30% by value in June 2026, reflecting their strong presence in small loans and diverse customer needs.
The report states that NBFCs continue to hold a strong position in small loans. Loans up to ₹2 lakh represent 82% of the industry, with NBFCs contributing 47% to the category, compared to 17% for banks. NBFCs account for 58% of total lending in semi-urban and rural markets, making them almost equal to banks at 60%. This penetration is also reflected in the changing landscape of NBFCs' credit-active consumer base.
Between June 2016 and June 2026, the share of consumers in semi-urban and rural markets increased from 31 percent to 59 percent. During this period, the share of women increased from 18 percent to 27 percent, credit-experienced consumers from 35 percent to 49 percent, and young consumers from 44 percent to 47 percent. This clearly indicates a growing and diversifying borrower base.
