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NBFC Credit Surges 14.9% Amidst Sectoral Shifts
7 Sep
Summary
- NBFC credit grew 14.9% year-on-year in July 2026.
- Agriculture credit saw a significant jump to 18.0% growth.
- Retail loans accelerated to 21.4% growth, led by housing.
In July 2026, India's non-banking financial companies (NBFCs) recorded a substantial year-on-year credit growth of 14.9%. This represents an acceleration from the 10.6% growth seen in July 2025.
Credit deployment data collected by the Reserve Bank of India highlights dynamic shifts across sectors. Agriculture and allied activities experienced a notable surge, with credit growing by 18.0% compared to 5.4% in the prior year. Conversely, credit to the industrial sector saw a moderation, growing by 7.4%.
The services sector's credit growth decelerated to 15.2% from 24.5% a year ago, despite buoyant expansion in commercial real estate. However, retail loans demonstrated accelerated growth, climbing to 21.4% year-on-year. This acceleration was notably driven by housing and loans against gold jewellery, while vehicle loans maintained a steady pace.
